Emerging market debt was far from the place to be in 2013, but has it redeemed itself so far this year? Rebecca Jones asks three experts for their view.
Jon Brager, senior analyst, Hermes Credit When we look at high yield emerging market debt (EMD) compared with developed market debt on a relative basis, we are approaching an extreme point. The ratio between emerging market and developed market spreads, steady at 1.2 for all of 2012 and early 2013, is now 1.75 - a level last seen during the 2001 Argentina default. This means that, if you have been underweight EMD over the past year, you will have probably outperformed a global benchmark. However, now we are at these extreme valuation points, the question is not if we should invest in E...
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