Haven Rout Sends Wall of Money Rushing Into Emerging Markets
- Pinebridge’s Faergemann says bond rally has scope to continue
- Decline in new-debt issuance helping secondary market
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Sentiment in the bond market has shifted toward taking on more risk, with a wall of money that had been waiting on the sidelines making its way to emerging markets, according to Pinebridge Investments.
Thursday’s rout in U.S. Treasuries and German bunds coincided with a rally in high-yielding debt of emerging markets, Anders Faergemann, a senior portfolio manager at Pinebridge in London, said by phone. The move helped junk bonds to recoup some of their underperformance in August relative to investment-grade debt, he said.