War Sparks Wall Street’s Rush to Commodity-Rich Emerging Markets
- After a brutal first quarter, investors eye EM exporters debt
- Surging energy and food prices become key driver amid war
A worker at the Ecopetrol Barrancabermeja refinery in Barrancabermeja, Colombia.
Photographer: Ivan Valencia/BloombergThis article is for subscribers only.
As the worst quarter for emerging-market dollar bonds in 24 years comes to an end, a deep divide is opening up between commodity haves and have-nots, with investors focusing their hopes on exporters in the Middle East and Latin America.
The rapid rise in energy and food costs as the war in Ukraine persists is weighing on the more vulnerable markets while boosting commodity producers. It’s the latest jolt for money managers who went into 2022 expecting inflation to peak as the Federal Reserve embarked on its tightening cycle.