EM investors are favouring local bonds as dollar debt lags - The Edge Malaysia
EM investors are favouring local bonds as dollar debt lags - The Edge Malaysia
Source: The Edge Malaysia
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DW NOTE
EM local-currency bonds are inflation hedges denominated in currencies that central banks can devalue at will. The rotation tells you investors think the Fed rate cycle matters more than sovereign solvency — a bet that works until the next naira or lira devaluation wipes out two years of coupon in a week.