By Mohamed El-Erian
Parting Shot: Mohamed El-Erian
Investors must become more discerning if they are to navigate the next stage in the emerging market growth cycle — and still make a return
Having witnessed numerous emerging markets crises over the
years, I am continually impressed by how well the majority of
these economies - including in Latin America - have navigated
the present global economic malaise.
This resilience has helped pull millions of people out of
poverty while accelerating a long-term realignment of the
global economy. It has also been a source of solid returns in
the fixed-income markets, especially for investors starving for
income in today's ultra-low interest rate world.
But with Europe's lingering crisis, America's sluggish
economy, and slowing growth in emerging economies, some are
understandably questioning the sustainability of the observed
strength of EM local and external bond markets.
There are six key issues that should be taken into account
when assessing the risk...
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