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Sunday, January 14, 2024

Argentina, Turkey Lure Investors Seeking High-Yield Bond Returns

 

  • Junk-rated EM bonds beat investment-grade peers last year
  • TCW, Neuberger, M&G among those who like high-yield notes

Global investors are ramping up bets in some of the world’s riskiest bonds, convinced the debt will extend its spectacular rally as the threat of default subsides in emerging markets.

High-yielding government bonds — from Argentina to Turkey and Zambia — are once again luring money managers as policymakers promise reform, restructuring deals materialize and default risks abate. The strategy handed investors in emerging-market junk bonds 18.5% last year, nearly triple the returns in investment-grade sovereign debt, according to data compiled by Bloomberg.

https://www.bloomberg.com/news/articles/2024-01-14/argentina-turkey-lure-investors-seeking-high-yield-bond-returns

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