EMD outlook for 2023: local currency yields offer protection in volatile conditions

Capital Group
By January 24, 2023 13:52

EMD outlook for 2023: local currency yields offer protection in volatile conditions

Key takeaways

  • Global factors weighing on emerging market debt in 2022 look likely to continue in 2023, but high starting yields within EM local currency debt could help offset subsequent price volatility, while negative outcomes appear to be priced in within some areas of hard currency debt.
  • Local currency bonds: we prefer to extend duration in Latin American countries that have hiked interest rates early, and we are starting to see opportunities within Europe.
  • Hard currency bonds: we favour a meaningful positive carry through idiosyncratic, high yielding sovereign and select corporate issuers.

Asset Manager

Capital Group is one of the largest and most experienced investment management companies in the world

Capital Group is in 1931 opgericht in de Verenigde Staten en een van de grootste onafhankelijke vermogensbeheerders ter wereld met een actief beheerd vermogen van meer dan $2,1 biljoen. We doen alleen vermogensbeheer. Al 90 jaar is het ons primaire doel om een consistent en superieur resultaat te realiseren voor langetermijnbeleggers.

Website:capitalgroup.com

Feike Goudsmit
Managing Director, Institutional
Tel: +31 (0) 20 797 7575
E-mail: feike.goudsmit@capitalgroup.com

LinkedIn: capital-group-europe

Capital Group
By January 24, 2023 13:52

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