Global investors favour emerging market junk bonds most in eight years
Updated
Updated · Bloomberg · May 7
Global investors favour emerging market junk bonds most in eight years
8 articles · Updated · Bloomberg · May 7
JPMorgan data showed the spread gap versus US Treasuries narrowed to 311 basis points, the tightest since May 2018, after a ceasefire-driven bond rally.
Risk premiums on emerging-market high-yield debt compressed faster than those for investment-grade sovereign bonds, signalling a stronger return of appetite for riskier assets.
The shift reflects investors' renewed hunt for yield as the Iran war winds down, boosting lower-rated emerging-market debt more than safer peers.
With bond markets pricing in near-zero defaults, are investors ignoring the fragile reality of the Iran peace talks?
Beyond the peace dividend, are AI and supply chain shifts making emerging markets a permanent investor favorite?
How will the Iran conflict's resolution reshape Europe's long-term energy security and its reliance on US LNG?