What are the fundamentals behind EM debt demand?

The 'growth gap' between emerging and developed markets is widening in the former's favour and emerging markets are expected to grow by a robust 4.5% this year, according to Muzinich's Warren Hyland.

One reason for this is that economies such as Russia and Brazil are now coming out of recession and in tandem, economies such as India and China are enjoying improved stability.  Stability and low commodity prices lead to little inflationary pressure, which can encourage central banks to reduce interest rates. Aberdeen multi-asset team: Why stars are aligning for EMs Such a move is expected in the likes of Brazil, India, Indonesia, Russia and Turkey, and is in keeping with the loose monetary policies at present favoured by the European Central Bank, the Bank of Japan and the US Fed...