Emerging markets will offer relative value opportunities next year, yet investors should also be mindful of derisking as the credit cycle nears its end, hears an AsianInvestor forum.
They identify three obstacles to a pick-up in liquid e-trading of EM fixed income in the secondary market, and suspect only consolidation among providers can offer a solution.
Middle Eastern institutions are among those looking more closely at emerging market fixed income as they seek higher yields, says Steve Cook of PineBridge Investments.
Hedge funds, urged by banks to buy big into EM debt ahead of Japanese institutions, were left high and dry, says the UK fund house's co-head of research.
Junk bonds may offer attractive returns relative to sovereign debt, but both asset classes are at record low yields. Are investors taking sufficient note of fundamentals?
Amy Cho, Asia-Pacific business development head at Pictet Asset Management, discusses how interest in local- and hard-currency EM debt is gaining critical mass.