Don't fear the Fed, and stay bullish high yield. The market pricing for a March rate hike has moved up to around 90% and most EM currencies have barely bothered to notice. Our view of a "split USD"- i.e.a USD that strengthens against G10 currencies and to some extent low yielding AXJ, but weakens against EM currencies,and high yield EM in particular - is playing out, and we continue to recommend a strategy of being overweight/longhigh yield EM,and underweight/short low yield. Why today's USD setup is different.In 2014, the anticipation of US monetary tightening led to USD strength particularly vs the EUR and JPY. ... (full story)