EM debt hedge funds play safe amid rally
Emerging-market debt hedge funds, boasting impressive double-digit returns this year, are strategically mitigating risks amidst a deepening rally. Funds are swapping longer-maturity bonds for shorter-dated ones, prioritizing higher-rated, liquid securities, and increasing cash reserves. This cautious approach addresses uncertainties stemming from US policies, global conflicts, and tight pricing, while still seeking selective opportunities for further gains.
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India's ESG bond market picks up as global and domestic push align: Vineet Agrawal of Jiraaf
Hedge funds dedicated to emerging-market debt are increasingly turning to risk-mitigating strategies to ensure they lock in double digit gains as a broad rally in developing nation assets deepens.After a banner first half of the year, hedge funds targeting EM debt have returned nearly 13% on an annual basis-more than their peers positioned in any other asset class, according to data based on Bloomberg indexes.The latest global financial flows data shows the asset class remains thriving and the extra yield investors demand to hold the sovereign debt of developing nations over US Treasuries just hit a 15-year low. Such tight pricing, along with uncertainty over US policies and global conflicts, is pushing hedge funds to curb risks as they ride the historic rally. The funds do this by swapping longer-maturity bonds in their portfolios for less risky shorter-dated ones. They also focus on higher-rated debt and the most-liquid securities while keeping an ample cash pile."Do you just want to be massively long on credit on these valuations? I'd say probably not," said Anthony Kettle, who co-manages BlueBay Emerging Market Unconstrained Bond Fund with Polina Kurdyavko and Brent David. "Having a little bit of dry powder evidently makes sense, and also running elevated cash levels."To be clear, Kettle said, there's still a "decent environment" to gain additional returns as funds become more selective and can profit from both rising and falling asset prices, unlike index-based investors. The $784-million BlueBay fund has returned 17% over the past 12 months.Investors have taken advantage of EM inflows stoked by increased interest for alternative assets amid US policy unpredictability, which has also weakened the dollar. While many developing countries have come out of distressed debt levels as sentiment improved, further risks include another Iran-Israel flare up and potential additional increases in US tariffs, including on the buyers of Russian energy.President Donald Trump's administration has caused a "breakdown of the traditional safe haven correlations" by shaking up the post-Cold War world order, creating an "unusual and unpredictable" environment, said Demetris Efstathiou, the chief investment officer of Blue Diagonal EM Fixed Income Fund."It is very hard to predict what they will do next with tariffs, and on top of that you have ongoing wars," Efstathiou said.
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‘Just in case these foolish statements are...': Trump orders nuclear sub deployment after Medvedev's 'provocative' remarks
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World War III fears grow as Trump sends nuclear submarines toward Russia — fires back at Putin crony's bold threat
Donald Trump orders U.S. nuclear submarines near Russia after Medvedev's warning sparks global tension- In a dramatic turn of global events, President Donald Trump has ordered two U.S. nuclear submarines to be strategically deployed near Russian waters. This powerful move comes after Russia's Dmitry Medvedev, former president and current deputy chairman of the Security Council, made what Trump called 'foolish and inflammatory' threats, evoking Cold War-era nuclear rhetoric. The decision is not just a military maneuver—it is a strong geopolitical message amid rising global tensions and ongoing conflict in Ukraine. Donald Trump responds to Medvedev's nuclear threats with submarine deployment Tensions between the U.S. and Russia are reaching a boiling point after President Donald Trump ordered two nuclear submarines to reposition closer to Russian waters. This dramatic military maneuver was a direct response to former Russian President Dmitry Medvedev's alarming nuclear rhetoric, where he warned of retaliatory measures over Trump's Ukraine ceasefire deadline. Trump framed the move as a "precaution," yet it marks one of the boldest nuclear postures by a U.S. president since the Cold War. His administration is sending a clear signal: America won't tolerate escalatory threats from Moscow. Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Artificial Intelligence Degree Data Science Others Product Management MBA Leadership Finance Healthcare CXO Public Policy Operations Management PGDM MCA Data Science Management Technology Cybersecurity Data Analytics healthcare others Design Thinking Digital Marketing Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details But Trump's move isn't just about deterring Russia militarily—it's part of a broader pressure campaign that includes punishing economic measures. Alongside the submarine deployment, Trump is ramping up tariffs and trade restrictions, directly tying them to global alliances and behavior, especially countries with growing ties to Russia. This includes India, a key member of the BRICS alliance, which has continued importing discounted Russian oil and weapons. With NATO on edge and global markets rattled, Trump's military and economic posture is designed to reassert American dominance on multiple fronts. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 20 Things Women Should NEVER Wear! Undo Trump, reacting via his Truth Social account, stressed that the U.S. cannot afford to ignore such escalatory language. Calling Medvedev's rhetoric 'provocative,' Trump revealed that two nuclear-powered submarines have been moved to undisclosed locations near Russia 'as a precautionary measure.' His words echoed a deepening concern that the world is again walking a tightrope between diplomacy and destruction. US nuclear submarines positioned as warning signal to Russia The deployment of U.S. nuclear submarines near Russia serves a dual purpose—military deterrence and strategic signaling. While Trump emphasized that the move is defensive and meant to 'avoid unintended consequences,' analysts say this marks one of the most visible escalations between the U.S. and Russia in recent years. Live Events The submarines involved are part of the U.S. Navy's Ohio-class ballistic missile fleet, capable of carrying dozens of nuclear warheads. Their undetectable stealth and immense power make them one of the most formidable assets in America's strategic arsenal. This development is especially critical as it comes at a time when U.S.–Russia relations are already strained over the prolonged war in Ukraine, cyber threats, and economic sanctions. Trump's decisive move may shift the global chessboard and intensify calls for diplomatic engagement before the situation spirals further. Dmitry Medvedev revives Cold War-era nuclear warnings At the center of this high-stakes exchange is Dmitry Medvedev, who has increasingly taken on a more hawkish and aggressive tone in recent months. In his latest statement, Medvedev dismissed Trump's suggested Ukraine ceasefire plans and instead referenced Russia's massive nuclear arsenal. He also mentioned the 'Dead Hand' system —a Cold War legacy technology rumored to automatically launch Russia's nuclear weapons if national leadership is wiped out. This chilling detail sent shockwaves through Western governments and likely played a major role in Trump's rapid military response. Medvedev's public comments appear designed to demonstrate Russia's refusal to be bullied or coerced into surrendering geopolitical ground, especially in the ongoing conflict with Ukraine. Is Trump targeting India and BRICS with tariffs over Russia ties? Yes, and the message is loud and clear. President Trump has slapped a 25% tariff on Indian imports, followed by a penalty tied to India's continued trade with Russia. His administration is increasingly frustrated with BRICS nations—including India, Brazil, and China—who've maintained or deepened economic ties with Moscow despite the ongoing war in Ukraine. India's position is particularly sensitive: while it maintains strategic autonomy, its oil purchases from Russia and growing defense partnerships have drawn Trump's ire. U.S. officials even suggested India is being "made an example" to deter other nations from ignoring Washington's red lines. Trump's trade strategy is deeply intertwined with his foreign policy objectives. He's not only seeking better deals for the U.S. but also using tariffs as leverage to isolate Russia and disrupt emerging multipolar alliances like BRICS. Some U.S. lawmakers have gone as far as proposing 500% secondary tariffs on countries that continue to fund what they call "Putin's war machine." The timing is no coincidence—Trump's submarine deployment near Russia and economic pressure on India are part of the same high-stakes chess game. By linking military deterrence with aggressive trade tactics, Trump is reshaping the global order on his terms. Trump's decision sends global markets and foreign leaders on alert The announcement came as a shock to many international leaders, with NATO allies quickly convening emergency briefings to assess potential fallout. Several European nations have voiced concern about the dangerous path being carved by nuclear saber-rattling on both sides. Financial markets also reacted with caution. Global stocks dipped, oil prices surged, and defense stocks rallied as investors priced in the risk of growing military conflict. Analysts warned that such volatile moves could create long-term instability unless world leaders return to diplomatic channels. The United Nations issued a statement urging both the U.S. and Russia to exercise restraint and avoid inflammatory actions that could further escalate nuclear tensions. The Ukraine war continues to fuel global geopolitical instability The Ukraine–Russia war, now in its third year, remains a core source of global instability. President Trump has repeatedly insisted that Russia must agree to a ceasefire and begin peace talks, warning of strict deadlines and harsher consequences. However, Moscow has resisted U.S. pressure, and the Kremlin continues to frame the conflict as a defensive effort against NATO expansion. Trump's latest move underscores just how intertwined the nuclear issue has become with the broader Ukraine war. Experts fear that any misstep—verbal or strategic—could ignite a new, more dangerous chapter in this long-running conflict. Analysts warn of heightened nuclear risk and diplomatic breakdown Nuclear policy experts across the globe have raised alarms, cautioning that any military escalation involving nuclear assets, especially submarines, could be misinterpreted as a preparation for attack. 'This is a very delicate moment,' said Dr. Elena Petrov, a nuclear strategy analyst at the Atlantic Institute. 'By publicizing the submarine deployment, Trump is both deterring aggression and potentially increasing the likelihood of misunderstanding or miscalculation by the Russians.' She added that in a world where communication can be instantaneous but filtered through political rhetoric, leaders must be especially cautious. 'What's said online or in speeches can spark real-world consequences—especially when nuclear weapons are involved.' Trump defends the move as necessary caution, not aggression In the face of mounting criticism, President Trump defended his decision. He emphasized that the U.S. had no plans to initiate conflict but could not sit idle while a senior Russian official made what he termed 'reckless threats.' Trump insisted the move was not just about protecting American interests but also about showing strength in the face of intimidation. 'Words matter,' he wrote. 'When someone threatens nuclear retaliation, we must take it seriously.' This response plays into Trump's broader strategy of projecting American strength on the world stage, particularly in matters involving national security, energy dominance, and great power competition. Will nuclear brinkmanship replace diplomacy? The current climate raises difficult questions about the future of international diplomacy. With both Washington and Moscow hardening their stances, and with war still raging in Eastern Europe, the room for peaceful resolution appears to be narrowing. Analysts warn that mutual threats and weapons deployments only serve to erode what little trust remains between the superpowers. The absence of formal arms control talks, especially after the collapse of key nuclear treaties in recent years, makes these moments even more dangerous. Whether this incident becomes a turning point for reengagement—or the beginning of a new era of nuclear brinkmanship—remains to be seen. He world watches as nuclear tension rises between U.S. and Russia Trump's bold decision to deploy nuclear submarines close to Russian territory has transformed a war of words into a potential flashpoint. His warning to Medvedev—combined with the reality of submarine positioning—sends a clear message that the U.S. is ready to defend its interests and allies, even at great risk. At the same time, the move has rattled the international community, highlighting the urgent need for renewed diplomacy, strategic calm, and nuclear de-escalation. For now, all eyes are on what happens next—because in a world with nuclear weapons, miscommunication can become catastrophe in a matter of minutes. FAQs: Q1: Why did Donald Trump deploy nuclear submarines near Russia? To respond to Medvedev's nuclear threats and rising tensions over Ukraine. Q2: What did Dmitry Medvedev say that triggered Trump's decision? He warned of Russia's Cold War-era nuclear retaliation system, the 'Dead Hand.'
