Investors' growing appetite for emerging market debt is a cause for concern as the asset class could be set for a correction, says Rathbones' David Coombs.
On Monday, Investment Week reported EMD specialists were shunning lower yielding regions ahead of anticipated rises in US treasury yields. Now, Coombs, head of multi-manager at Rathbones, says the trend towards chasing high yield in EMD is worrying. Investors have been looking to high yield bonds because they are less dependent on short-term interest rate movements, amid concerns over potential rises. But Coombs warns: "If I am an investor looking for income and I am very cautious I still do not think high yield bonds are the right place to be." "In emerging markets you are see...
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