Pimco, GMO Refine EM Playbook as Fed Set to Shake Up Market
- Local bonds are seen as bright spot as Fed readies rate cut
- Political reforms in Argentina, Ecuador still have room to run
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Top-performing emerging-market bond managers are recalibrating positions as the most anticipated US interest rate cut in decades brings fresh impetus to an asset class buffeted by nearly $15 billion in outflows this year.
Investors from Pacific Investment Management Co. to Neuberger Berman and Grantham Mayo Van Otterloo & Co. are eyeing local-currency debt and select reform stories from countries including Ecuador and Argentina, which they say stand to benefit most from the boon the Fed cuts should provide to risk assets.