Fixed Income Leaders Summit: Emerging Markets 2019

March 11 - 12, 2019

The Ritz-Carlton Westchester, White Plains, NY

Day Two: Tuesday, March 12, 2019 | Trading Techniques & Best Execution

7:20 am - 8:20 am Registration And Breakfast In The Solutions Zone

8:20 am - 8:25 am Opening Remarks

8:25 am - 8:35 am Chairman’s Remarks

8:35 am - 9:00 am Presentation | Building A Best-In-Class Fixed Income Emerging Markets Trading Desk

Bao Vo - Senior Director, Emerging Market Trader, TIAA
Fireside Chat: Building A Best-In-Class Fixed Income Emerging Markets Trading Desk
Finding the right combination of brokers, platforms and technology to successfully navigate the market can be easier said than done. And with eTrading just starting to improve in EM, what are the best new ways for improving your access to illiquid markets? Where are the investments in new technologies going and what capabilities does the buy side need to actually achieve the best execution result? In this presentation, you will learn more on:
  • What the biggest drivers influencing the buy side desk are and how can you embrace these now to improve investment performance
  • Setting up portfolios in new emerging markets - how you can improve efficiencies when gaining access to local markets
  • Measuring liquidity - how can you do this in EM to best determine the spread you should demand and different issue sizes?
  • eTrading in emerging markets - how are buy side heads approaching EM and what steps are they taking to access liquidity?
  • How you can apply ‘out of the box’ thinking to drive your fund business and generate returns for your investors in complex environments
  • Who should you partner with to navigate your trading desk? 

Bao Vo

Senior Director, Emerging Market Trader
TIAA

Local currency or hard currency? It’s not a new question, but as markets constantly shift and evolve, whether or not to take on FX risk becomes harder to answer. During times of uncertainty, hard currency/dollar-denominated debt may seem like the smartest bet, especially when currencies fluctuate - but the benefits of diversifying away from the dollar and the cumulative positive effect of emerging market nations with stronger economic growth are hard to ignore. In this debate, you will hear two different views on how to use currency to its optimal advantage when buying EM debt.
  • Where do greater returns really lie - in local or hard currency?
  • Are the risks and uncertainty in local currency worth the benefits, if currency fluctuation goes your way?
  • ETFs emergence into this space and what this diversification could mean for your portfolio

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Eylem Senyuz

Director, Global Macro Strategist
SunTrust Advisory Services, Inc.

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Eric Fine

Portfolio Manager/Managing Director
Van Eck Global

Developed markets have had the benefit of using new technologies like AI and automation to increase liquidity, transparency and the ease and speed of trades over the past few years. During that time, EM has stayed the course with little technological advancement and over 70% of EM trades are still done by voice. This presentation will shed light on where technology is going in EM and what you can do to properly prepare and take advantage.
  • When will tech disruption hit EM and should you be preparing now?
  • What are currently the most commonly used trading protocols on the EM buy side and how will this evolve as eTrading eventually grows?
  • What steps you can take to establish the best trading protocol to meet your liquidity needs
  • How tech in EM can reduce the inefficiencies in your trading desk and improve price discovery and price transparency
  • What is currently happening in AI, robotics, peer-to-peer platforms and cloud technology - and how will these impact investments and trading in the next 5-10 years? 

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Alexander Sedgwick

Head, Fixed Income Market Structure & Electronic Trading
T. Rowe Price

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Michael O'Brien

Head of Global Trading
Eaton Vance

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Russell Budnick

Managing Director & Head, Credit Trading
J.P. Morgan Asset Management

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Anthony Tassone

Founder and CEO
GreenKey Technologies

Rachel Zhang

Managing Director, Head of Fixed Income Front Office Technology
Jefferies

10:20 am - 11:00 am Networking And Refreshment Break In The Solutions Zone

The many uncertainties that accompany EM sometimes mean active investing can seem more attractive than passive investing. At the same time, the deteriorating ability of money managers to beat their indices has led investors to accelerate a shift towards passive strategies, such as ETFs. This adds to the pressure on actively managed funds to justify their fees. Do current market conditions provide a solid opportunity for active managers to demonstrate their value or do passive managers still have the long-term advantage? In this panel, our speakers will explore.

  • Have passive investments won the race for assets and returns?
  • Why have active managers predominantly underperformed in the past and what are the indicators that this trend is set to reverse?
  • Are current market conditions providing a backdrop for active managers to demonstrate their true value or do passive managers still offer the best source of returns?
  • Is the period of outperformance of passive funds vs. active funds set to change with more opportunities coming for active managers around rising rates?
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Roosevelt Bowman

Head, Foreign Exchange Trading & Strategy
MetLife Investments

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Abhishek Kumar

Managing Director & Sector Head, Emerging Markets Debt
State Street Global Advisors

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Michael Cirami

Vice President, Portfolio Manager, Co-Director of Global Income
Eaton Vance

11:40 am - 12:10 pm Presentation With Extended Q&A | US Interest Rate Outlook And Its Impact On Emerging Markets

Brian Smedley - Head of Macroeconomic & Investment Research, Guggenheim Partners
The combination of a strong US economy and Fed tightening tends to shake up emerging markets, and this cycle has been no exception. With US interest rates rising and the dollar ascendant, what will this mean for EM and how should you prepare? In this presentation, you will  dive into:
  • How much further will the Fed raise interest rates, and what will it mean for Treasury yields?
  • Will the Fed manage to avoid tipping the US – and the global economy – into a recession?
  • Can we trust the recessionary signal from a flattening Treasury yield curve, or does QE mean this time is different?
  • What do rising rates mean for the dollar and how will EM be affected?
  • How should EM investors position in this environment?

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Brian Smedley

Head of Macroeconomic & Investment Research
Guggenheim Partners

12:10 pm - 1:15 pm Lunch

1. Russia 
Eric Jayaweera, Senior Portfolio Manager, Emso Asset Management

2. Chile 
 Katrina Butt, Assistant Vice President, Emerging Market Debt ,Sovereign Analyst, Alliance Bernstein

3. Middle East

4. India

5. Southeast Asia

6. Mexico 
Alejo Czerwonko, Director, Emerging Markets Investment Strategy, UBS Asset Management

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Alejo Czerwonko

Director, Emerging Markets Investment Strategy
UBS Asset Management

Katrina Butt

Assistant Vice President, Emerging Market Debt — Sovereign Analyst
Alliance Bernstein

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Eric Jayaweera

Senior Portfolio Manager
Emso Asset Management

Track A: FX
As the investment world becomes broader and broader by the day, more countries, currencies, and issuers have been added - plus liquidity has increased, investors’ diversification opportunities have been considerably expanded, and issuer quality has improved. The diversity and limited transparency within EM can be what excites investors, but that’s not usually helpful with benchmarking. In volatile and unpredictable markets, how much can you trust and use benchmark indices to advance your investment goals?
  • Evaluating different emerging market benchmark indices Which benchmarks are used most and how best to beat them?
  • How effective are benchmark indices when definitions of EM can vary and only a small part of the actual investable universe is represented?
  • How important are today’s EM indices when opportunities are always changing and can come from unexpected places? 

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Alejandro Padilla

Head Strategist of Fixed-income, FX and Commodities
Banorte

Jean-Dominique Bütikofer

Head Emerging Markets Fixed Income
Voya Investment Management

Waleed Shoukry

Portfolio Manager – Global Emerging Markets Debt
United Nations Joint Staff Pension Fund

Track B: Trading
The opportunities to make large returns in high yield EM bonds have always been hard to ignore for tolerant investors. As emerging markets’ rise in stature, investment grade debt also starts to stands out, acting as a source of high quality profit for investors who are willing to look beyond developed markets’ debt for attractive income opportunities. Join this panel, to learn more on how best to incorporate IG bonds into your portfolio.
  • Assess current risks and opportunities within investment grade bonds
  • How IG bonds should influence, or continue to influence, your current investment plans
  • Which EM countries are currently prone to less default than their developed market counterparts and how you can take advantage

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Eric Jayaweera

Senior Portfolio Manager
Emso Asset Management

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Thomas A. Smith

Managing Director – Emerging Markets, Senior Portfolio Manager
MetLife Investments

Jeff Grills

Partner & Co-Head, Emerging Markets Debt
Gramercy Funds Management

2:55 pm - 3:05 pm Innovation Spotlight

3:05 pm - 3:35 pm Presentation | FX Custodians And Their Place In Modern-Day Trading

Garth Appelt - Managing Director & Head, Foreign Exchange & Derivatives, Mizuho Americas
FX deals executed as part of a securities transaction and settled by a custodian represent a large percentage of the interbank FX market, but this seems to be changing as time goes on. Lack of transparency in profits and the easing of trading FX directly with the market are certainly not helping custodians. In today’s world, where do FX custodians fit in? In this presentation, you will delve into:
  • Declining use of custodians in EM and what this means for the market moving forward The risks, as well as benefits, of working with FX custodians for 2019/2020
  • The race for custodians to have the tightest spread possible - and avoiding a race to the bottom when volume is limited

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Garth Appelt

Managing Director & Head, Foreign Exchange & Derivatives
Mizuho Americas

3:05 pm - 3:35 pm Presentation | How Are ETFs And Derivatives Impacting Liquidity? A Look At Trading Fixed Income Asset Classes

Abhishek Kumar - Managing Director & Sector Head, Emerging Markets Debt, State Street Global Advisors
Factors like geopolitical issues and less transparency in EM countries are all reasons that an investor might opt for an ETF instead of trying to locate and evaluate individual securities themselves. As more and more firms are adding ETFs to their portfolio, what can they really do for your EM investment strategy and how exactly are firms managing them?
·         What are the ETF use cases to unlock new investment opportunities?
·         How  internal teams are structured to facilitate the efficient trading of fixed income ETFs
·         What are the reservations when trading ETFs?
·         Learn more on derivatives like swaps and futures and options in the EM space and how to capitalize on these contracts
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Abhishek Kumar

Managing Director & Sector Head, Emerging Markets Debt
State Street Global Advisors

3:35 pm - 4:15 pm Networking And Refreshment Break And Final Visit To The Solutions Zone

4:15 pm - 4:45 pm Presentation | Building The Next Generation EM Trading Team: What Is Needed For Today’s Trader To Thrive In An Unpredictable Landscape

Peter Marber - Chief Investment Officer for Emerging Markets, Aperture Investors, LLC
What are the critical success factors for hiring and training the best trading talent in emerging markets today? Which skills and traits are essential for a modern-day trader to thrive? Hear more on how to attract top talent and create the best team possible to advance your investment goals.

  • Are there new job titles and roles that can be developed on the buy side to adapt to changes in EM?
  • Ways to foster a collaborative environment and build a winning team
  • Key steps to tap into different skillsets and backgrounds to embrace diversity and inclusion - what advantages does this bring when many external factors are changing in emerging markets?
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Peter Marber

Chief Investment Officer for Emerging Markets
Aperture Investors, LLC

4:45 pm - 5:15 pm Presentation: Emerging Markets Equities... from a Fixed Income Perspective

Marshall Stocker - Portfolio Manager, Vice President, and Global Macro Equity Strategist, Eaton Vance
For attendees interested in discussing real money traded in real time… emerging market equity funds offer investors access to countries and areas of the world that are undergoing economic transition. After a two-year rally, EM stock returns slowed in 2018. How can you best prepare for short-term market moves, while at the same time, understand that EM equity performance cycles typically unfold over several years? This interactive presentation will present empirical data to:
•Go beyond emerging markets equities and look at how sovereign analysis can be used to managed EM equity assets
•Identify the current trends in EM equity asset management which are most important for the next several years
•Explain what determines the overwhelming majority of EM equity excess returns; hint—it’s not stock-picking

Marshall Stocker

Portfolio Manager, Vice President, and Global Macro Equity Strategist
Eaton Vance

5:15 pm - 5:15 pm Conclusion of Fixed Income Leaders Summit: Emerging Markets