How Will Emerging Market Debt Emerge From the Crisis? (Capital Group)

KEY TAKEAWAYS

1. The impact of the recent volatility has varied greatly within emerging markets, particularly between the investment grade and higher yielding parts of the asset class. This has been reflected in the differences in yields in local and hard currency bond markets.  
2. Most EM countries have responded to the crisis with monetary policy, but the use of fiscal policy and virus containment measures have varied more. 
3. The starting point for valuations – whether that is in EM FX, EM dollar debt or the longer end of local yield curves – is currently attractive, and so at some point, we could expect strong returns from the asset class. READ MORE

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