Investors Slam on Brakes in Emerging Markets as Risks Escalate
- Traders place premium on credit quality, strong balance sheets
- Investment grade outperforms high yield by most since 2008
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Emerging market investors are piling back into safer asset classes as mounting trade tensions spell the end of this year’s clamor for yield.
Fears of global slowdown -- the fallout of Donald Trump’s trade war -- and the collapse of the Argentine market have dealt a blow to junk and local-currency bonds this month, the asset classes of choice for money managers looking to bolster their returns.