The 'compelling valuations' in local currency EMD

Slowdown only temporary

The fundamental outlook for emerging market (EM) debt continues to be positive.

External vulnerabilities have receded considerably and several countries are now in a position of rebuilding FX reserves and easing monetary policy.  Corporates and consumers, China aside, have deleveraged and adjusted to lower commodity prices. Absent any indications of overheating in developed markets, core global monetary policy is expected to turn only slowly, allowing EM central banks to cut rates and support growth further. Mirabaud launches EMD fund as it makes manager hire This, along with historically low EM inflation, is supportive of lower bond yields and EM currencie...