TEI - Positive 2020 Outlook For Emerging Markets Debt
A number of factors lead us to think the outlook for emerging markets debt ((EMD)) is positive. Last year's performance was clearly above average (primarily driven by falling U.S. Treasury yields, rather than EMD risk premia compression).
This year's overall balance of factors looks marginally more constructive than last year's, based predominantly on better economic growth in emerging markets, but also on low inflation, positive EMD fundamentals, solid technical conditions, and attractive valuations.
Global Market Conditions Support EMD
We have a constructive outlook for EMD as the favorable combination of factors that drove the strong