G7 lose shine as attention turns to emerging sector

In a period of global growth, the $300bn emerging market debt sector looks set to gain popularity while G7 treasuries lose their appeal. The global economy is being revitalised to the benefit of the export markets and therefore the foreign capital levels of less developed countries (LDCs). Julian Adams, fund manager of the Aberdeen Sovereign High Yield fund, says: "The emerging markets' difficulties are behind us. There is a return to flexible exchange rates, while increasing trade and current account surpluses are making them less reliant on foreign capital." The lowest risk of default c...