Within an environment of somewhat stretched valuations, there remain select pockets of value in both sovereign and corporate emerging markets bonds. Read more...
As a corollary of the recent run of positive performance in emerging markets debt, valuations have become somewhat stretched and dispersion has fallen—particularly in the larger emerging markets—leaving attractively valued opportunities fewer and farther between.
Within this environment there remain select pockets of value in both sovereign and corporate bonds, especially in some of the lesser-known emerging markets, where in-depth fundamental research is key.
We are managing these risks by positioning our portfolios more defensively while seeking idiosyncratic ideas and identifying active positions that still offer attractive value.