EM Fixed Income: remarkably unexpected
Emerging markets fixed income (EM FI) did well in 2019, reflecting better global economic activity and US-China trade negotiations, and easier DM central bank policies. Can EM FI markets rally further in 2020?
This paper focuses on the surprisingly strong returns in emerging market fixed income over 2019 amid a more positive tone on US/China trade negotiations and the impact of central bank policy. We also look at what investors can expect in the first quarter of 2020 and beyond. However, a number of significant headwinds remain including a sharp China slowdown, an uncertain political environment, and frothy valuations in many markets, most notably credit.
