Our view on emerging-market bonds is less optimistic after Federal Reserve policymakers indicated in mid-June that they may raise short-term interest rates sooner than previously expected. Although we had previously suggested investors consider overweighting emerging-market (EM) bonds relative to a benchmark target allocation, we now have a neutral view on EM bonds.
What’s Next for Emerging-Market Bonds?
Our view on emerging-market bonds is less optimistic after Federal Reserve policymakers indicated in mid-June that they may raise short-term interest rates sooner than previously expected. Although we had previously suggested investors consider overweighting emerging-market (EM) bonds relative to a benchmark target allocation, we now have a neutral view on EM bonds.