Kames' Roberts: EMD is least appealing area of fixed income market

Low- and high-risk parts of market under pressure

David Roberts, head of fixed income at Kames Capital, has said the lowest- and highest-risk assets in fixed income are coming "under pressure" from current market conditions, with emerging market debt looking particularly vulnerable.

He said: "We believe there is a set of circumstances where you could see the traditionally low-risk parts of the market, like gilts and the bund, and the high-risk parts of the market like EMD both come under pressure." Roberts (pictured) said emerging market debt (EMD) was the least appealing asset class in the short term, as valuations appeared expensive while the prospect of an increase in US interest rates and a reversal in oil's recent bull run made the asset class look "vulnerable" in the medium term. M&G's Calich: What are the threats to emerging market debt? Last week, the ...