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
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
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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