You are here

Emerging market bonds - brace for lower yields in 2018

But there are still pockets of opportunities where bond investors can seek value. By Neel Gopalakrishnan

Shanghai's Pudong financial district. China accounted for around 65% of primary bond issuance in Asia, giving quality issues outside China a rarity value and a stronger secondary- market bid.

EMERGING market (EM) bonds have had a solid run for several years now (see chart below). The JP Morgan Asia Credit Index (JACI, a widely used index of Asian USD-denominated bonds) has returned a CAGR of around 7 per cent between January 2009 and December 2017.

However, investors will find...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to