Global Bond Funds Look to Emerging Market Debt

Emerging markets have struggled this year against a plethora of headwinds but EM debt now looks attractive compared with US high yield

David Brenchley 30 August, 2018 | 2:28PM

Malaysia skyline, emerging markets, emerging market debt, bonds

Emerging markets have faced numerous headwinds so far in 2018. The current trade dispute between the US and China has been unhelpful, while rising US interest rates and a strong dollar pose problems. Elsewhere, we’ve seen troubles in countries like Venezuela, Argentina and Turkey.

The two worst-performing sectors in the Investment Association universe are emerging market focused: while global emerging market equity funds have struggled, with the average fund losing 4.2% year-to-date, global emerging market Bond funsd have been hit harder.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Legg Mason WA Mcr OppBd X GBPH Acc138.72 GBP-0.46
Neuberger Berman Glb Bd AbsRt GBP Z Acc10.14 GBP0.00

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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