Emerging markets debt outlook – Q2 2019

Invesco Fixed Income’s Head of Emerging Markets, Rashique Rahman, discusses how emerging market debt could perform in Q2 2019 with an updated asset allocation outlook and the potential risks to our views.

May 8, 2019 | Rashique Rahman

Emerging markets (EM) assets had a favorable first quarter likely driven by an improvement in external funding conditions and global central bank moves toward policy accommodation. EM credit outperformed the more volatile EM local currency markets over the period.

Going forward, Invesco Fixed Income believes that concerns over global growth are expected to result in bouts of market volatility, though the team favors increasing exposure to EM credit and local currency due to its expectations of continued global central bank policy accommodation and global growth stability into the second half of the year. The team also believes idiosyncratic country developments will remain prominent.

Click on “Download PDF” to read more of the team’s views.

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