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Aviva Storms Into Risky Frontier Debt as Trade Jitters Ease

  • Money manager says selloff has made EMs attractive once more
  • Frontier market favorites include Sri Lanka, Kazakhstan, Ghana
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A few weeks ago, Aviva’s emerging-market debt funds were cutting back on risk amid rumblings of a global tariff war. Today? They’re wading into some of the world’s most speculative investments: frontier market bonds.

The change of heart comes amid signs of easing trade tensions between the U.S. and China, as the two countries appear to be working toward a deal instead of a deepening confrontation. President Donald Trump’s announcement last week of tariffs on up to $60 billion of Chinese goods prompted a selloff in global risk assets, bringing the S&P 500 Index to its biggest weekly loss in more than two years and inspiring retaliation from Beijing.