DISCERNING investors could eke more gains out of developing-nation bonds, but the bulk of the rally in the riskiest corners of the market may have passed.
The gap between spreads on emerging-market high-yield debt and global peers has narrowed from a record 470 basis points in May to 127 basis points, close to the 10-year average of 94. Developing-nation high-yield bonds lost 1% in January, halting a two-month rally that handed investors returns of more than 8%.
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