Global Emerging Markets
After yet another challenging year for emerging market bonds characterised by a collapse in currencies and a spike in a number of local bond yields, attractive investment opportunities are starting to appear.
Now that the Federal Reserve (Fed) has raised rates, investors may start to view emerging market debt in a new light.
A moderately more hawkish Federal Reserve—which on Wednesday opened the door wider for a December rate hike—will perhaps stall a recovery in emerging market currencies, but the global search for yield will likely keep dollar denominated emerging market debt from retreating in price substantially.
At the recent Schroders Webconference hosted by Craig Botham, Emerging Market Economist, three emerging market investors with different perspectives discussed the outlook for the region.
Multi-Asset view: while the outlook for global equities overall remains broadly positive the forecast for emerging markets and fixed income is not so bright as the region faces up to the perfect storm.
Schroders Head of Emerging Market Equities Allan Conway discusses why he remains optimistic over the outlook for emerging markets despite recent volatility induced by worries over China.