Once Avoided Like ‘Plague,’ EM Duration Is Back in Fashion
- Pictet, VanEck tout long-duration EM bonds ahead of Fed cuts
- Traders grow more confident on Fed’s path, boosting EM bets
Workers at a facility in San-Pedro, Ivory Coast.
Photographer: Paul Ninson/BloombergThis article is for subscribers only.
Investors in emerging-market debt are once again turning to long-duration bonds, a popular bet at the end of last year that burnt many of them in the first months of 2024.
Two consecutive months of below-estimate US inflation has revived expectations for rate cuts by the Federal Reserve, triggering a rebound in long-dated sovereign debt after hopes for lower rates had evaporated.