M&G's Calich: What are the threats to emerging market debt?

Renewed expectations of a US interest rate rise and the uncertain outcome of the imminent US election have recently contributed to more moderate returns from emerging market bonds after their solid year-to-date performance.

Elsewhere, however, potentially better news has included firmer oil and commodity prices, while sentiment towards Brazil notably improved following the impeachment of former President Dilma Rousseff.  The latter development should ease the political landscape in Brazil, an important country whose outlook typically receives much attention among emerging market investors. President Michel Temer now faces the task of guiding the country out of its challenging environment and some key considerations appear to be on his side. Brazil's high inflation rate, for example, has started to edg...