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.
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.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.