Emerging Market Debt Outlook 2018: A Global Rebalancing is Due (Vontobel)

As we begin the new year, the fundamentals in place for emerging market bonds are very good indeed. The strong inflows into emerging market debt in 2017 were driven by improving fundamentals and structural rebalancing of global fixed income portfolios – both trends are set to continue in 2018.

In this outlook, we explore the following:

• Under allocation and a benign economic environment positive for emerging market debt in 2018
• Emerging corporate bonds provide cover if rates should rise
• Threat of protectionism is overblown
• Best opportunities found off-benchmark
• Emerging debt is not overvalued

READ MORE

Similar Posts:

• Why Fixed Income Investors Should Consider a Dedicated Allocation to Emerging Market Debt (PineBridge)
• What Makes Emerging Market Debt Tick? (CFA Institute)
• Emerging Markets: How to Unlock the Next Wave of Returns (Amundi Asset Management)
• Why Emerging Markets Are Up to the Stress Test (FP)
• Are Investors Ignoring Growing Warning Signs for Emerging Market Debt? (RBA)
• China’s Innovation Boom Benefits Active Managers (William Blair)
• Ruchir Sharma’s Guiding Principles for Emerging Market Investing (Bloomberg)
• Morgan Stanley: Emerging Market Pillars Seem to be Crumbling
• Emerging Market Companies & Governments Binge on US Dollar Debt (WSJ)
• Why It’s Not Time to Squeeze the Brakes on Indian Equities (Franklin Templeton)