Reported 1 day ago
Emerging market local-currency bonds are gaining popularity as they show better performance compared to dollar-denominated bonds, despite offering lower yields. Factors such as expectations for interest rate cuts in developing countries and a declining US dollar are driving this trend. Local-currency bonds have returned 3.2% this year, while dollar bonds have only gained 0.7%. Analysts believe that lower issuance of US dollar bonds and fears of a recession in the US will further strengthen the position of emerging local-currency bonds.
Source: YAHOO