(Bloomberg) – Emerging market dollar-denominated speculative-grade bonds have lost about 4% this year, representing the worst performance since 2018 after 2019-2020 gains. As investors weigh the risks, including China’s real estate woes and rising interest rates heading into 2022, keep in mind that these stocks lost money two years in a row only once: in 2013-2014 . Some investors are already betting on a rally, such as M&G Investments, which is increasing exposure in sub-Saharan Africa, Latin America and Eastern Europe, with a focus on idiosyncratic stories somewhat isolated from global macroeconomic challenges, said Pierre Chartres, chief investment officer. fixed income in Singapore.
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