Legg Mason Global Asset Management
August 25, 2016
A leading global investment company with specialized expertise in equities, fixed income, and alternatives.

EM Debt: Back in the Saddle

The Bottom Line
  • Emerging market (EM) debt has come on strong this year and is well ahead of most other major bond sectors for the year-to-date return through mid-August.
  • The rebound follows a very difficult period for the sector, sparked by collapsing commodities prices and furthered by fears of potential currency devaluations to support export markets and concerns about higher interest rates in the US.
  • But with the Federal Reserve now signaling caution, fears about devaluation have moderated, while commodity prices have stabilized. That’s made the relatively high yields available through EM debt more attractive to investors.
https://www.leggmason.com/en-us/insights/chart-of-the-week/em-debt-back-in-the-saddle.html 
/posts/em-debt-back-in-the-saddle-XD9TOn8B/attachment/8-22-16-cotw-png-640786
More from Legg Mason Global Asset Management
The most important insight of the day
Get the Harvest Daily Digest newsletter.