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Article: Handle emerging market bonds with care.
- Article from:
- Investment Adviser
- Article date:
- August 4, 2008
CopyrightCOPYRIGHT 2008 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jim Leaviss is head of retail fixed income at M&G
Emerging market bonds have had a great run, but that could change overnight
Emerging market sovereign bonds have had, until recently, a fantastic run. From the beginning of 2003 to the end of May this year, Russian government bonds returned 80 per cent, while Brazil returned 187 per cent. Ecuadorian government bonds returned a massive 283 per cent, according to Bloomberg and Merrill Lynch indices. But we're not interested in historical returns, we're bothered about future returns. Are emerging market bonds good value now? We think not. June was a very poor month for emerging market bonds, and it ...