EMD yields look attractive but beware political risks

After a volatile Q4 2018 when credit spreads widened but government bonds rallied due to safe-haven flows, fixed income markets across different categories have delivered strong returns so far this year.

Credit spreads tightened, supported by the US Federal Reserve's first rate cuts since the Global Financial Crisis driven by the mixed economic outlook. The European Central Bank also reduced its deposit rate, and in September announced a new asset purchase programme. Given the strong performance so far this year, the key question is: which market areas still offer attractive opportunities for investors and which areas are less likely to deliver strong returns?  Kames Capital bond fund fee cut a 'sign of things to come' Within emerging markets, investors find companies that have ...