A better inflation environment than in developed countries, an historically attractive fixed income environment with very high yields in some areas are all factors that justify an interest in emerging debt markets. This creates opportunities that require selectivity and extreme agility in order to be seized. Not to mention that this asset class also represents an interesting source of diversification for a portfolio.
Compared to the situation in developed countries, inflation in emerging markets (EM) has been relatively better behaved. Most emerging market central banks are probably more accustomed to dealing with price spikes than the European Central Bank or the U.S. Federal Reserve has been for several years. Read more>