The “most hated asset class of the last few years” will be the best performer in 2016, argues Jan Dehn, head of research at UK fund house Ashmore.
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.
The UK bank aims to offer liquid exposure to local-currency emerging-market debt as demand steadily rises for the asset class.
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.