Emerging market bonds defy investor worry

The unabated flow of funds into emerging markets debt has raised concerns among some money managers who feel developing countries may lack the size and scale to absorb the influx. However, such technicalities have done little to dampen investors’ quest for more lucrative alternatives to low-yielding bond investments in more mature markets, reports FT.com. As […]

By Staff | March 28, 2013 | Last updated on March 28, 2013

1 min read

The unabated flow of funds into emerging markets debt has raised concerns among some money managers who feel developing countries may lack the size and scale to absorb the influx.

However, such technicalities have done little to dampen investors’ quest for more lucrative alternatives to low-yielding bond investments in more mature markets, reports FT.com.

As risks considered specific to emerging markets taper, institutional investors like pension funds have been considering increasing their allocation to the asset class, some by doubling it.