Has the Sell off Made it Safe to Return to Emerging Market Bonds?

The Fed’s tightening cycle and the subsequent strengthening of the US dollar have finally spurred a reversal in Emerging Market capital flows across the board. Whilst Emerging Market borrowers are feeling the brunt of the higher cost of funding, investors have a choice of higher returns.

In the context of a Fed acting more aggressively than most expected, additional headwinds came into the picture: slower global growth, trade disputes and geopolitics.

Read full article here