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

 William Blair's Todd McClone: Divergent paths between China and India

William Blair's Todd McClone: Divergent paths between China and India

Dominant emerging markets

Todd McClone
clock 16 May 2024 • 4 min read
Partner Insight: Remaining optimistic on emerging markets

Partner Insight: Remaining optimistic on emerging markets

Is it time to abandon emerging markets?

Rasmus Nemmoe, Portfolio Manager at FSSA Investment Managers
clock 13 May 2024 • 10 min read
Ninety One's Nicholas Jaquier: A letter from Argentina

Ninety One's Nicholas Jaquier: A letter from Argentina

The reforming frontier-market economy

Nicolas Jaquier
clock 10 May 2024 • 4 min read
Trustpilot