Is the EM debt opportunity over?

Emerging market debt has been one of the more lively sectors over the past year, with a sharp sell-off in 2013, but are there any opportunities for managers now?

May 2013's taper tantrum - sparked by talk of the winding up of QE in the US - curtailed a strong run for the asset class, and sent yields spiking. The comments by previous Fed chair Ben Bernanke hit all three major EM debt indices. EM government bonds denominated in US dollars saw yields jump from 4.3% to back above 6% in a month, while local currency debt jumped from 5.2% to 6.7% and corporate debt from emerging market companies was similarly affected. Since last June, this shock has mostly unwound for US-dollar denominated EM debt, with yields now back down at 5.1%, and corporate y...