The EM debt rebound

Emerging market debt

Anthony Gillham, fund manager on the multi-asset team at Old Mutual Global Investors, explains why prognostications on the demise of emerging market debt this year have been grossly exaggerated

Today's bond market tone is very different compared with the start of the year, when the consensus view was very bearish for government bonds in both developed and emerging markets.  Top of the list of concerns for most investment bears were the words of former Federal Reserve chairman, Ben Bernanke, when he first suggested slowing the rate of central bank asset purchases in May 2013. While government bond markets took fright, emerging market bonds bore the brunt of the ensuing sell-off. Sterling investors had to look all the way back to the Asian financial crisis in the late 1990s to...