There are cautiously optimistic expectations that inflation will decline and the Fed's rate hike cycle has peaked. That opens up opportunities for emerging market bonds to shine, according to some investment managers.
India's inclusion in a widely tracked emerging market debt index suite will also bolster the local currency's value against the US dollar, said HDFC Pension Fund Management's Sriram Iyer.
Amid macro uncertainty and slowing growth, PGIM Fixed Income’s emerging markets (EM) debt team aims to minimise vulnerabilities while selectively tapping opportunities across bonds, rates and currencies – a tried-and-tested approach that has also secured an AsianInvestor award.
Supported by Asia’s structural growth story, fixed income assets – including Hong Kong dollar (HKD) bonds – offer investors a potential route to resilient and diversified returns despite the blurry global outlook, according to HSBC Asset Management (HSBC AM).
Commodities and more aggressive alternative strategies are among the options being explored as institutional investors look to counter potential threat.