Emerging-market bonds poised for ‘very strong run’ after years of outflows: Aberdeen

[SINGAPORE] Emerging-market bonds are trading at historically attractive levels and could be headed for a period of “very strong performance” after years in the doldrums, said Siddharth Dahiya, global head of emerging-market debt at Aberdeen.

Real yields – the inflation-adjusted return that investors earn – on many emerging-market bonds are now in the 3 to 4 per cent range, noted Dahiya, in a recent interview with The Business Times.

This is higher than the 1 to 2 per cent, or even negative rates seen during the Covid-19 years when inflation spiked, and above much of what was seen over the past 10 to 15 years.