JPMorgan, Aviva Shrug Off EM Rout on Bet for Soft US Landing
- EM debt spreads at 400 basis points are attractive: JPMorgan
- Fed cuts would see managers diversify portfolios from US to EM
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Investors including JPMorgan Asset Management, M&G Investments and Aviva Investors say they seized on the retreat in riskier assets at the start of the month to bolster their holdings of emerging-market bonds.
While a small chorus of fund managers warn of a new retreat if fresh US recession fears emerge, others are betting on a period of steady easing by the Federal Reserve that burnishes the appeal of higher-yielding assets in developing nations. The more risk-tolerant recommend locking in high yields in markets like Ukraine and Ecuador.