Emerging Markets Cross-Asset Strategist, Emvest Partners

Guillaume Coutant

Emerging Markets Cross-Asset Strategist

Thematic (Sector/Industry)

iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB US)

iShares J.P. Morgan USD Emerging Markets Bond ETF

EM sovereign debt has been in the spotlight recently, attracting investors seeking for yields within a better economic outlook.EM debt distribution is heading towards more local-currency denominated bonds, a trend that should last considering stronger EM currencies and more expensive USD-denominated debt.Most developing nations have piled in strong currency reserves that will protect them in case of potential external shocks.Both EM equity and currency benchmarks have started long term bullish trends in January 2016. These trends suggest more appreciation of EM currencies, and capital inflows into developing nations. Correlation with their equivalent EM bond benchmarks is high.

EM sovereign debt has been in the spotlight recently, attracting investors seeking for yields within a better economic outlook.EM debt distribution is heading towards more local-currency denominated bonds, a trend that should last considering stronger EM currencies and more expensive USD-denominated debt.Most developing nations have piled in strong currency reserves that will protect them in case of potential external shocks.Both EM equity and currency benchmarks have started long term bullish trends in January 2016. These trends suggest more appreciation of EM currencies, and capital inflows into developing nations. Correlation with their equivalent EM bond benchmarks is high.

Ishares Emerging Markets Local Currency Bond ETF (LEMB US)

Ishares Emerging Markets Local Currency Bond ETF

EM Sovereign Bonds : Local or Hard Currency?