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Where are the opportunities in emerging market debt?

Guillermo Osses, head of emerging market debt at Man GLG, reveals where he see the best return opportunities. But he also issues a warning.

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“Over our investment horizon of three years we think the area with the best risk-adjusted returns will be local currency bonds,” says Osses.

But there is a caveat: emerging market debt is very volatile, and as a consequence the entry point matters.

“Today we are at the end of a massive rally that has lasted for 18 months.” Investors would therefore be well-advised to be mindful of that, warns Osses.