Currency set to drive returns from EMD in 2020

While valuations in emerging bond markets may look fairer after solid performance in 2019, we believe various factors remain supportive to the outlook.

These include the prevailing low interest rate environment in developed markets, which underlines the appeal of higher yields from emerging market debt in hard and local currencies.  In many cases, emerging economies offer positive real yields, which furthermore compares favourably against the backdrop in developed markets. Gallery: 11 outlooks for asset classes, themes and investing styles in 2020 We would also note that other relevant asset classes, such as US high yield debt and equities, performed strongly in the past year, helping to maintain the relative attraction of holding...