Some of the riskiest countries are dragging down emerging-market debt – The National

Some of the riskiest countries are dragging down emerging-market debt – The National

Even as the outlook brightens for emerging-market debt, bonds from a handful of the riskiest countries are being left behind. And there is little evidence that is about to change.

Dollar notes from nations including Tunisia, Argentina, Lebanon and Egypt are handing investors steep losses this month, contributing the most to a 0.7 per cent decline in the Bloomberg Emerging Markets Sovereign Index.

The laggards have weighed on the performance of an otherwise resilient group, which stands to benefit as inflation eases and central banks near the end of interest rate-raising cycles.