Are emerging markets the next frontier in fixed income?

5 min read 13 Mar 23

After another difficult year for emerging market (EM) bonds in 2022, with the asset class facing headwinds on numerous fronts, we believe easing inflation and a modest upturn in global growth should provide a more supportive backdrop in 2023. We also think EM bonds look compelling from a valuation perspective, with the asset class offering an elevated real yield which compares favourably with other segments of the fixed income market.

By Claudia Calich

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

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