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Pimco Says Now Is Time to Buy Emerging Market Debt After Selloff

Investors should buy emerging-market debt after the worst selloff in more than a decade drove up yields, according to the world’s largest bond investor.

“From a fundamental point of view, we see value in the higher yields available on many EM bonds, both in local currency and U.S. dollars,” Ramin Toloui, the co-head of emerging markets at Pacific Investment Management Co., wrote in a note today. “In a global environment characterized by continued concerns about growth -- even amid firmer economic indicators -- policy interest rates in both developed and emerging countries are poised to stay low.”