Emerging market debt: Winners and losers – Arabian Business

Emerging market debt: Winners and losers – Arabian Business

Yields across hard currency emerging markets debt have blown out by 2 percent or more this year, with sovereign hard currency debt recording a year-to-date loss of almost -17 percent, driven mainly by higher interest rates across the globe.

Emerging markets now look extremely attractive relative to both their history and many other parts of fixed income. If past is any guide, from these valuation levels, EMD tends to deliver strong risk-adjusted returns.

For many investors the difficult question is not just when to buy but what to buy.