Over-gloomy news flow creating opportunities in EMD

Brazil is a good illustration of why many investors remain wary of emerging market debt (EMD), despite the serious attractions of the asset class.

Barely a week seems to pass without headlines warning of more political turmoil. The run-up to Rousseff's impeachment last year was a low point for Brazil as spooked foreign investors lost confidence, resulting in a plunging currency, sharp interest rate rises, inflation and economic misery. But it also demonstrated that balances and checks in the political and judicial system work, signalling the end of a political era and reviving markets - for a while.  Managers eye opportunities in Brazil as market 'prices in too much fear' In October 2018 Brazil will face an election. The ou...