Monday 26 August 2019

Emerging Bond Investors Haven’t Been This Defensive Since Lehman - Bloomberg

Emerging Bond Investors Haven’t Been This Defensive Since Lehman - Bloomberg:

With the U.S. and China’s trade war appearing to take a new turn every day, emerging-market investors are getting more cautious. By one measure, they are the most defensive they have been in more than a decade.

High-grade bonds in developing nations have returned 3% this month, while junk-rated securities in emerging markets have lost 2.7%, according to JPMorgan Chase & Co.’s indexes. The last time the outperformance of the former was so big was in October 2008, the month after Lehman Brothers collapsed.

It was a different story earlier in the year as investors piled into riskier countries in a hunt for higher yields.

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