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Investment Weekly

Bonds are back (in emerging markets)
23 February 2024

    Chart of the week – Bonds are back (in emerging markets)

    Emerging market (EM) local currency bonds have delivered strong risk-adjusted returns on the back of global disinflation and cheap EM valuations. Many EM bond markets have considerably higher nominal and real yields than the US and some – in particular, India, Mexico and Indonesia – offer attractively high yields with relatively lower FX volatility. But what does the medium term outlook hold?

    Chart of the week – Bonds are back (in emerging markets)

    More from this week:

    Market Spotlight

    • China ramps up policy action

    Lens on…

    • Higher for longer - part II
    • It’s all-REIT
    • Beware of the crowds

    Download the full report PDF, 3.1MB