Why emerging market high yield debt will rally as defaults increase

Pandemic throwing up more surprises

clock • 4 min read

When selecting where to invest, one cannot take an overly simplistic view of the markets and individual securities. Unfortunately, this has been especially prevalent since the outbreak of the coronavirus pandemic.

Private investors flocked into supermarket stocks in March as the newspapers were filled with reports of panic buying and enormous queues. Yet increased costs and higher sales of lower-margin products meant this had a limited impact on their bottom line. It is a similar story in the healthcare sector; pharmaceuticals soared on every rumour of a breakthrough in developing a treatment for Covid-19, yet numerous biotech managers - some of whom own these stocks in their portfolio - have warned the public mood means these companies would be unlikely to charge much more than cost price for suc...

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 Emerging markets

(L-R) Sanjay Shah and Nilang Mehta, portfolio managers at HSBC AM

HSBC Asset Management's Shah and Mehta: There are bright spots when investing in India

Diwali boost to Indian investment

Sanjay Shah and Nilang Mehta
clock 15 November 2023 • 4 min read
David Kimberley (pictured), investment trusts writer at Kepler Partners

Kepler Partners' David Kimberley: Emerging market shifts

We live in interesting times

David Kimberley
clock 14 November 2023 • 4 min read
Andrew Ness (pictured), manager at Templeton Emerging Markets Investment Trust

TEMIT's Andrew Ness: The sustainable investment opportunity in emerging markets

Three opportunities

Andrew Ness
clock 31 October 2023 • 3 min read
Trustpilot