- Better treatment protocols and better understanding of how to prevent the spread of COVID-19 mean that lockdowns and the associated collapse in growth are unlikely in the near future.
- As mentioned earlier, EM has been held back by COVID-19, limited policy flexibility and weak capital flows. As these factors change, EM has room to move higher, in our view.
- As the global economy moves to a more sustained recovery, supported by a vaccine, and the developed markets keep very easy financial conditions in place, we favor a pivot.
For further details see:
Fixed Income: Is It Time To Pivot Toward Emerging Markets?