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.