With the global tide of the central bank stimulus injection soon to turn, only a few segments of the fixed income universe have enough spread cushion to absorb the shift to a post-QE era.
Many emerging market economies have strengthened, putting them on firmer footing for future growth. We believe valuations remain attractive but this asset class needs careful handling: investors should look for a quality-focused approach with risk mitigation...
Proposed changes to monetary policy
Which currencies should EMD investors hold in their portfolios?
Emerging market bonds generated decent performance in the first half of 2017, rallying well after weakening towards the end of last year on the US election result.
Brazil is a good illustration of why many investors remain wary of emerging market debt (EMD), despite the serious attractions of the asset class.