Emerging market debt in sweet spot: Blackrock
There's a bullish undertow as the World Bank expects EMs to expand 4.1%.
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Genevieve Cua
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THE emerging market debt asset class is in a sweet spot, says Blackrock's managing director and product strategist for emerging market debt Ernesto Bettoni, thanks partly to synchronised global growth.
Returns, however, are expected to be more moderate going forward. "We're not in as strong an environment as in the past 11/2 years. We think we'll go to a moderate scenario where the return of 5 to 6 per cent is close to the coupon rate, which is not bad.
"We're not expecting double-digit returns, but it's still one of the best in fixed income at the moment.''
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