[ I N D E P T H | E M E R G I N G M A R K E T S ]
DON ’ T SLEEP ON EMERGING MARKETS FIXED INCOME
As the industry turns its collective attention to the potential for a rebounding of emerging markets in the fixed income sphere , CLAUDIA PREECE takes a look at the current state of play , unpacking how both firms and providers are keeping EM bonds front of mind to maximise opportunities in the space and the key motivations for desks going forward .
With the advent of an ever-more technologically innovative and globally connected capital markets sphere , fixed income emerging markets ( EM ) have demonstrably become an increasingly appealing area of interest for investors .
As trading of these assets has become easier and market conditions are predicted to fall in line , the industry has seen a swathe of new EM-focused hires , increased attention paid to developing markets ’ performance , and enhanced offerings from providers .
Across the industry more attention is noticeably being paid to this universe as the expectation of lowering dollar rates looms nearer , with the potential for new liquidity opportunities proving irresistibly appealing to market participants .
“ There is a structural case for emerging markets , and it is set to remain a core part of the fixed income opportunity set ,” asserts John Espinosa , head of sovereigns and portfolio manager for Nuveen ’ s global fixed income team .
“ It is currently 10 % of the Bloomberg Global Ag-
34 // TheTRADE // Q3 2024