and South Africa , and JP Morgan including Indian government bonds in its emerging market debt index .
Demonstrably , the asset class is growing with a swathe of firms moving to position their teams in the strongest position possible .
“ Bank trading desks continue to add human and algo trading resources to the sector , and that paired with the increase in alternative liquidity providers is proving that EM can provide unrivalled liquidity ,” asserts Burke .
“ The emerging markets fixed income sphere is recovering , and we expect inflows back to the asset class after years of investor exodus .”
JEAN-CHARLES SAMBOR , HEAD OF EMERGING MARKET DEBT AT
TT INTERNATIONAL
A stock picker ’ s paradise The emerging market fixed income sphere is not one , simple and homogeneous set . As an asset class it is a universe full of intricacies and niche knowledge . Though bolstered by rebounding economies , increasing globalisation and accessibility , what is key is knowing where – and how – to maximise opportunities .
“ In this world , it is about selectivity . Emerging market fixed income is a bit of a stock picker ’ s paradise ,” declares Yu .
But just how is this being enabled ? As the EM investment community expands , of course so does the ecosystem which surrounds it .
The space , which by nature is fragmented both geographically and in terms of instruments , and thus complex , is being democratised through the enhancement of the systems . Namely , technological innovation through automation and electronification .
Nooy tells The TRADE : “ Different regions and countries have different domestic rules about what you can and can ' t do and what you can trade . On the currency side , you need to be able to settle locally which includes custodians , so it is not easy .”
40 // TheTRADE // Q3 2024