What’s attractive among emerging market assets?

UBS
By August 28, 2018 02:03

What’s attractive among emerging market assets?

For investors who remain underallocated to EM USD-denominated sovereign bonds, this is a good time to look through the noise and rebalance. 

There is no denying that emerging market (EM) assets have underperformed developed market counterparts year-to-date. Reading the financial headlines – from severe trade wars to turmoil in Turkey, Argentina, South Africa, and others – one gets the impression that there is no point maintaining exposure to these assets. We disagree. One asset class in particular – US dollar-denominated EM sovereign bonds – may be down, but is hardly out. In fact, we believe the bonds are not only strategically desirable but also tactically attractive, and thus deserve an overweight in global tactical asset allocations.

UBS
By August 28, 2018 02:03

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