High Yield Bonds: Where to Invest

Emerging market high yield bonds have underperformed their developed market counterparts - creating a buying opportunity according to fixed income experts

Hermes 21 May, 2014 | 2:58PM
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This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, Fraser Lundie, co-head of Credit at Hermes Fund Managers explains why emerging market high yield now warrants special attention.

It wasn’t long ago that global high-yield credit investors had essentially two choices in terms of regional preference: North America and Europe. But with the growth of emerging market corporate debt over the past decade, and its increasing contribution to performance dispersion within major benchmarks, emerging market high yield is now a sector that warrants special attention.

It makes sense to be adding emerging market risk

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About Author

Hermes  Hermes is a multi-asset fund manager offering global institutional and pension fund clients access to a broad range of specialist, high conviction investment teams.

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