JPMorgan Sees Emerging-Market Debt in ‘Sweet Spot’ as QE3 Starts

The Federal Reserve’s third round of bond buying is putting emerging-market corporate and sovereign debt is in a “sweet spot,” according to JPMorgan Chase & Co.’s Joyce Chang.

The quantitative easing, known as QE3, is reducing bond supply and prompting investors to seek higher-yielding debt from developing nations, Chang, the global head of emerging-market research at JPMorgan, said yesterday at a conference at Bloomberg’s headquarters in New York. Dollar-denominated government debt in developing countries has returned 14 percent this year as corporate securities advanced 12 percent, according to JPMorgan indexes. Treasuries gained 2.4 percent.