Notícias

Backed by solid fundamentals, competitive yields and increased economic resilience in issuing countries, emerging market debt now appears to be an attractive investment opportunity.

Many baby boomers have entered the decumulation phase of their financial lives and for them, the priority has shifted from capital appreciation to income stability. Accordingly, diversification and carry (income from coupons) are paramount. Investors value the stable yields bonds provide, especially when they come with managed volatility, and emerging-market debt (EMD) is an excellent source of diversification.

Despite headlines of fiscal risks and political unrest, Colombia, Chile, and Peru are defying expectations with their appreciating currencies, credible policies, and strong economic fundamentals.

Despite recent volatility, emerging markets (EMs) continue to hold significant potential for investors. The current global trends and market conditions present several tailwinds that can drive growth and create opportunities in EM fixed income investments. Here, we explore these tailwinds and discuss the investment implications for the second half of 2024.