Head of Emerging Markets Debt Relative
Emerging markets debt yields are at levels which rival reasonable forward expectations for equities in 2019. In our view, a true catalyst for additional price gains will likely be a lower US dollar.
Our economics, equities and debt teams share their views on Turkey, where the lira has fallen sharply and raised concerns about broader market contagion.
A solid global backdrop, improving fundamentals and relatively attractive income to drive continued, albeit more modest, gains in 2018 despite increased country divergence.
Schroders’ emerging market debt (EMD) relative team highlight the broadly positive fundamental outlook for emerging markets in 2017
2017 may prove a challenging year with consensus expecting a firm US dollar; however any change to this view could see a considerable rally and fundamentals for many emerging markets have improved.
Our panel of experts reflect on the revival seen in emerging markets this year, and discuss whether it is set to continue in 2017 in the wake of the recent US presidential election result.
In this era of unprecedented asset price movements, we think investors should adapt their mindsets: they would be well served not to think of emerging markets as emerging markets.