Fast reading
- For the year to date, global fixed-income total returns have been stymied by re-elevated core rates following the late 2023 rally, while money market yields have remained elevated, providing clients with an attractive alternative to longer-duration assets.
- Going into the year, along with many market participants, we believed that EMD returns would be largely driven by rates. However, as the potential for US Federal Reserve rate cuts has receded significantly, EMD running yield should be a useful proxy for 2024 total returns.
- We believe one way to augment and introduce total return opportunities in EMD is to embrace frontier markets, and doing so can add capital appreciation possibilities along with the higher running yields. We detail this argument the second section of our Q2 report.
For more information on Emerging Markets Debt please click here
EMD report Q2 2024
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