Multi-asset managers trade high yield for EMD

Laura Dew
clock

Multi-asset managers have begun to add exposure to emerging market debt (EMD) after yields on dollar-denominated debt rose above those on junk bonds for the first time since 2005.

Legal & General IM’s Justin Onuekwusi and Henderson’s  multi-asset team have been adding to dollar-denominated EMD in recent weeks after a shift in relative valuations. Barings’ Andrew Cole has increased exposure to local currency debt, meanwhile, in the belief FX risk is now worth taking. Emerging market debt saw a dramatic sell-off last year as the US announced the planned tapering of its QE programme and capital inflows into emerging markets declined. But investor interest has begun to return, as iShares ETF data shows. James de Bunsen, part of Bill McQuaker’s multi-asset team a...

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 Investment

Partner Content: Is the interest rate descent the time to harvest bonds?

Partner Content: Is the interest rate descent the time to harvest bonds?

Markets expect interest rates to fall this year, offering investors the strongest opportunity for fixed income seen for a long time. Watch this video podcast to learn how best to harvest this exciting opportunity.

Sarka Halas
clock 28 March 2024 • 1 min read
Partner Insight: How effective are impact investments?

Partner Insight: How effective are impact investments?

Impact investing has transformed over the past decade, giving investors the opportunity to pursue both financial returns and social and environmental outcomes.

Sarka Halas
clock 27 March 2024 • 2 min read
Partner Insight: High-yield investors should keep a close eye on the default cycle

Partner Insight: High-yield investors should keep a close eye on the default cycle

As central banks start to think about cutting interest rates, forecasts for a peak in credit default rates are not far behind — and could happen sooner than expected, says Wellington Management’s Alex King.

Sarka Halas
clock 27 March 2024 • 2 min read
Trustpilot