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5 reasons why EM bonds are hot: Fasdal
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Simon Fasdal, head of fixed income trading at Saxo Bank, gives five reasons why emerging markets bonds are attractive at the moment.
- Weak US payroll numbers were an adrenalin kick to emerging market bonds
- There is still room forĀ“ upside in emerging market bonds because of a yield gap between other bond classes and emerging market bonds
- Asset managers and hedge funds could regain interest in emerging markets later this year
- Brexit scare could make investors seek opportunities outside Europe
- European bonds are not attractive because of negative yields and continuing quantitative easing from the European Central Bank. Investors could seek other opportunities in the emerging markets