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The outlook for emerging markets debt is growing increasingly bullish. The global economy is transitioning from a V-shaped recovery led by parts of Asia and the United States, to one in which emerging markets will outperform. Bouts of heightened volatility are offering attractive entry points to an asset class that offers much sought-after yield. With attractive valuations and global investors underweight the asset class, the case for a dedicated EMD allocation is growing ever stronger. As a means to defend fixed income portfolios against rising interest rates, EMD needs to end up back on the asset allocation agenda.