Debt triumphs

Emerging markets

clock

With its lower volatility and higher recovery rates, emerging market debt has been a far better bet than equities, a situation that looks set to continue as these nations develop further

Within emerging markets, debt has outperformed equity markets over the past 13 years. Macroeconomic improvements in the emerging markets regions have helped to increase debt returns, produce higher coupons and reduce its volatility level. Investors have also been attracted to this asset class as it is transparent and they can invest in it through hard currencies, which reduces the risk. Debt has proven a much more attractive way to participate in the overall macro improvement seen in a number of developing countries, as emerging market government bonds have generally traded as a proxy for ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •