Local Currency: Gaining currency

Local Currency: Gaining currency

Bonds

By Katie Llanos-SmallFor a time last year, it seemed that one of the most compelling narratives in emerging markets investment had run its course. As eurozone fears reached their climax, a surge in risk aversion saw investors shun local currency debt – an asset class which had distinguished itself post-crisis as one of the most appealing anywhere – in favor of hard currency. But the retreat didn’t last long. A sharp improvement in risk sentiment following central bank moves to put a floor under the crisis lent fresh momentum to the investment thesis. And the asset class is once again the mostly highly sought after in emerging markets, as portfolio managers extend their hunt for yield. EM

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial