Reported 11 months ago
Emerging-market investors are shifting focus to local debt and currency trades following election disruptions that affected long-standing bets in major emerging economies. Asset managers like Ashmore Plc and Ninety One are increasing positions in local debt, especially in frontier markets. Turkish assets are gaining favor due to an optimistic outlook after economic policy overhauls. The search for new returns intensified post-election surprises, with investors considering countries like Egypt, Nigeria, and Poland for investment opportunities. T Rowe Price, for example, is buying the Colombian peso while selling the Chilean peso, emphasizing relative value trades amid reduced exposure to EM currencies. Analysts anticipate carry trades to recover in the future, although potential volatility remains with upcoming elections in various regions.
Source: YAHOO