Investec's Eerdmans neutral on EMD as investors pile in

Investec's Peter Eerdmans has taken a neutral position in emerging market bonds on the view the sector will consolidate following its highs this year.

The manager of the Investec Emerging Markets Debt fund says although performance from EM debt has been strong this year, yields are unlikely to fall much further from current levels. He attributes the strength of local bond markets to relief the central banks moved less aggressively than anticipated, but warns future opportunities are limited to specific sectors and underlying currencies. "The scope for EM bond yields to fall much further is limited," he adds. This month Eerdmans has moved the fund to an overweight position in Peru and remains overweight high yielding markets such ...