97% return on Wall Street's "EM special situations" trading outperforms traditional emerging-market investments.
Wall Street's "EM special situations" trading, involving buying bonds from low-rated countries adopting economic measures or negotiating funding agreements, has delivered a 97% return over the past year, outperforming traditional emerging-market investments. Firms like Vontobel Asset Management and Abrdn Plc have benefited from this strategy. While tighter spreads in distressed countries may limit future gains, experts see potential in local-currency bonds and frontier markets.
May 14, 2024
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