2024-02-09 23:03:00 ET
Summary
- EM local currency sovereign bonds did even better than dollar-denominated sovereigns, outpacing the other asset classes listed above by an additional 160 bps, and without the benefit of a sustained EM currency rally.
- Given the higher yields available in EM and, in aggregate, stronger debt fundamentals versus DM counterparts, the overall outperformance in 2023 is not surprising.
- We believe that the favorable technical picture, combined with the attractive fundamental profile of EM debt, sets the stage for another year of potential outperformance versus DM bonds.
A favorable technical picture, combined with the attractive fundamental profile of emerging markets debt could lead to another year of potential outperformance versus developed markets bonds. ...
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Technical And Fundamental Factors Paint A Rosy Picture For EM Bonds