Emerging market debt and high yield to shine

Emerging markets and high-yield debt had a strong run in 2003 and now face a rising interest rate en...

Emerging markets and high-yield debt had a strong run in 2003 and now face a rising interest rate environment but that has not damped the ardour of Threadneedle for such paper. Laurence Mutkin, fund manager at the group, remains positive on both sectors and while he does not anticipate returns being as high as last year he does expect both asset classes to outperform government bonds in 2004. Mutkin adds that while the prospect of higher global interest rates does pose risks for all bond markets, if central banks do raise rates, it will be a sign economic growth is strong and able to take...