UBS Joins Morgan Stanley in Touting Hedges Across Emerging World

UBS is advising investors to seek protection against potential losses in emerging-market credit as the escalating war in Iran threatens developing economies. The guidance signals a shift toward risk-off positioning that could widen EM credit spreads and pressure local currencies, increasing demand for hedges and protection in sovereign and corporate debt exposures.

Analysis

UBS is advising investors to seek protection against potential losses in emerging-market credit as the escalating war in Iran threatens developing economies. The guidance signals a shift toward risk-off positioning that could widen EM credit spreads and pressure local currencies, increasing demand for hedges and protection in sovereign and corporate debt exposures.