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Frontier Debt Shines as Unlikely Haven in World of Rising Rates

  • Duration of frontier bonds is less than traditional EM peers
  • Africa seen as most attractive region due to commodity exports
Brazilian Stocks Plunge Amid Government Crisis

Photographer: Patricia Monteiro/Bloomberg

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As the hunt for investments that can withstand rising interest rates gathers pace, frontier assets are gaining popularity over their larger emerging-market peers.

The bonds of the world’s least-developed economies have returned 2.6% this year, keeping pace with their 2020 performance, while higher-ranked emerging-market debt has lost almost 2%, reversing some of last year’s 5.3% advance, according to JPMorgan Chase & Co. indexes.