Morgan Stanley's Kushma Sees Superior Emerging Bond Returns
- EM local debt to beat foreign-currency notes in 2019: Kushma
- Opportunities seen in South Africa, Indonesia and Egypt
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Emerging-market bonds should return to winning form next year after a rough 2018 with a couple of caveats -- the trade war doesn’t worsen and a pause in Federal Reserve tightening puts a lid on the dollar.
That’s the message from Michael Kushma, the chief investment officer for global fixed income at Morgan Stanley Investment Management in New York. Local and foreign-currency notes should generate “above-average returns” in 2019 amid prospects for the dollar to peak and then weaken, he said in an interview in Singapore.