Where
This is an online event.
Raquel Altavilla - CFASS Administrator CFA Society Sacramento 916.715.5939 admin@cfass.org
The EM/Oil Tango: Can They Decouple?
Description
EM assets have typically outperformed their developed market counterparts when commodity prices, especially oil, are strong, and vice versa.
Is this still the case? With Asian economies emerging from coronavirus lockdowns much earlier than the rest, can EM assets now outperform even while real oil prices languish at historical lows?
- EM equities have limited direct or indirect oil content, and EM benchmarks are dominated by countries who are significant oil importers, i.e. beneficiaries of cheap oil.
- EM debt, especially hard currency-denominated debt is dominated by oil. Petro-credits are extremely vulnerable with contagion effects difficult to predict.
- The most liquid EM currency pairs are in oil-importing economies, but the primary driver here is global liquidity, risk appetite and the U.S. dollar.
Profile
Mehran Nakhjavani
Partner, Emerging Market Strategy
Mehran Nakhjavani is a partner and helped found MRB in 2010. He has extensive experience in investment research and investment management, specializing in emerging markets and oil-producing economies. Mr. Nakhjavani focuses on investment themes arising from the emergence of economies and financial markets outside the developed world. He works with clients to assist portfolio investment decisions primarily in emerging markets.
Prior to joining MRB, Mr. Nakhjavani managed emerging market and global equity portfolios at UBS Global Asset Management (1998-2008). He was also a minority owner and Managing Editor of BCA Research Inc., where he founded the firm’s emerging markets strategy service (1992-1998). Previously, he covered OPEC economics and finance with the Middle East Economic Survey, Financial Times and Economist Intelligence Unit.
Mr. Nakhjavani has an M.A. in Economic from McGill University and a B.A. from the University of Cambridge.
Cost for this program is free.
Zoom information will be emailed to attendees one day prior to the program.