Watch and Listen

60 seconds with Rajeev De Mello on EM corporate bonds as an income solution

Interest rates and yields on government bonds remain near record lows leaving investors scrambling for solutions to their income problems. Rajeev De Mello explains why emerging market corporate debt provides an answer.

27/07/2016

Rajeev De Mello

Rajeev De Mello

Head of Asian Fixed Income

In an environment where interest rates and yields on government bonds are very low, investors are looking for solutions.

Corporate bonds, whether in developed countries or emerging market countries, potentially offer an attractive option for investors looking for regular returns.

Despite performing well over the last couple of years, there are still plenty of opportunities in emerging market corporate bonds.

The reason for that is generally companies in emerging markets are issuing fewer bonds, which is good if you are a bond holder because there is less supply and therefore there is the potential to accrue some capital gains.

Demand remains good too. We are seeing retail and institutional investors very interested, and that has been a topic that has been recurring throughout this year and last.