Strigo: ‘We prefer hard currency debt in emerging markets.’For instance, emerging market hard currency (safe-haven currency) debt offers some 5.6% for a BB+ credit rating on average, while EM local currency debt offers 6.5% for a BBB credit rating on average. He sees emerging markets as the “oasis in a yield desert”, where some 97% of all sovereign developed markets offer a yield of below 2.5%. We prefer hard currency debt in emerging markets. In that respect, there is no discrimination against emerging markets, bonds certainly. So, when we talk about emerging market debt, we split it into three asset classes.

Source: The Star July 15, 2016 23:00 UTC