Top bond managers adjust strategies amid expected US interest rate cuts, focusing on local-currency debt in emerging markets.
Top emerging-market bond managers, including Pimco and Neuberger Berman, are adjusting strategies as anticipated US interest rate cuts may revive an asset class facing $15 billion in outflows this year. Focusing on local-currency debt and reform prospects in countries like Ecuador and Argentina, they expect increased capital flows into emerging markets. Despite past volatility, high-yield and investment-grade debt remain attractive, urging a shift in investment approaches.
September 01, 2024
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