Multi-asset managers have begun to add exposure to emerging market debt (EMD) after yields on dollar-denominated debt rose above those on junk bonds for the first time since 2005.
Jeremy Thomas, manager of the Brunner investment trust, says history tells us the EM crisis is far from over, but managers should not stop searching for low entry points.
Fund buyers have flagged the possibility of the country's largest emerging market equity funds reopening after outflows and market falls prompted a sharp drop in assets.