Why investors should not be put off by EM debt anomalies

clock • 2 min read

Emerging market fixed income has been one of the best performing assets classes of 2016 and this can be seen from improving industrial production and PMI indicators, showing that emerging economies are once again widening the gap to industrial countries.

As the year has progressed, the outlook for this sector has become even more benign: market fears have dissipated, rates remain low, and commodity prices have stabilised. Most important of all, after years of economic deceptions, we see more and more positive surprises that can only result in a changing of perception and increased inflows to the asset class.  The emerging market debt market exhibits many anomalies, often overreacting to events before calm is once again restored. By maintaining a bias for quasi-sovereigns and avoiding lower-rated issuers, which may be subject to forced...

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 Emerging markets

JPMAM's Nandini Ramakrishnan: Emerging markets show strength in a choppy world

JPMAM's Nandini Ramakrishnan: Emerging markets show strength in a choppy world

Valuable hedge against global uncertainties

Nandini Ramakrishnan
clock 01 July 2025 • 4 min read
China's monetary stimulus plan not enough to offset Trump's tariff onslaught

China's monetary stimulus plan not enough to offset Trump's tariff onslaught

‘Marginal’ 10bps cut to benchmark rate

Sorin Dojan
clock 08 May 2025 • 3 min read
SMT's Tom Slater: China remains a relevant player amid global market tumult

SMT's Tom Slater: China remains a relevant player amid global market tumult

18% share of the world economy

Sorin Dojan
clock 02 May 2025 • 3 min read
Trustpilot