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Attracted by the higher yields on offer, investors are flocking to emerging market corporate bonds. Grégoire Rifaut, Investment Specialist for Emerging Market Fixed Income, explains why, in his view, this trend is set to continue.
Emerging markets (EM) will remain a relatively bright spot in 2013. Our base assumption - that official rates would be maintained at the current low levels in most of the emerging and developed world for longer than anticipated by the market - has so far been accurate. The macro-economic backdrop for EM is for modestly better economic growth in 2013. We expect growth in the emerging world to reach approximately 5% this year, up from around 4.6% last year.
As at the end of March 2013, EM corporate debt had outperformed other...
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