M&G's Calich: Opportunities still persist in EM bonds

Outperformance brings cause for optimism

While the Covid-19 crisis continues to weigh heavily on the global economic outlook, investor risk appetite has rebounded thanks to swift and ongoing monetary intervention from the world's leading central banks.

Like in most equity markets, these actions have helped many areas of the global bond markets to deliver solid returns since the virus-induced sell off in March, including in emerging market (EM) fixed income, where credit spreads have narrowed considerably, but remain wider than they were at the start of the year.    Year-to-date returns within the asset class have included stark variations between issuer type (government or corporate), country, debt seniority, and currency denomination. Deep Dive into fixed income: The end of the bond bull market as we know it? Yet all of these fa...