Should investors now be turning to EM bonds for real yield?

clock • 2 min read

Many investors continue to overlook the risks associated with developed market bonds at the expense of potential opportunities in emerging markets, according to Robert Simpson, portfolio manager, fixed income at Insight Investment, part of BNY Mellon.

Financial markets in the developed world have been distorted by the effects of ultra-loose policy. Against this backdrop, the value of sovereign debt yielding below zero currently stands at around $10trn and the pool of corporate bonds with negative yields has also swelled as companies such as Nestlé, Royal Dutch Shell and EDF have seen their bonds trade in negative territory on the secondary market. German 10-year bund yields move into negative territory for first time Despite this, there has been a clamour for developed market investment grade debt as investors have been prepared...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Join us today to discuss why 2024 is an attractive entry point for fixed income

Join us today to discuss why 2024 is an attractive entry point for fixed income

Sarka Halas
clock 25 March 2024 • 1 min read
Partner Insight: Moving from cash to corporate bonds ahead of cutting-cycles

Partner Insight: Moving from cash to corporate bonds ahead of cutting-cycles

Fidelity International

Ben Deane, Investment Director, Fixed Income - Fidelity International
clock 19 March 2024 • 13 min read
JP Morgan AM to wind up Sterling Bond fund as assets dwindle

JP Morgan AM to wind up Sterling Bond fund as assets dwindle

Fund size of £29m

clock 18 March 2024 • 1 min read
Trustpilot