Money on hand is key for emerging nations

In the money: Workers unload crates of recently picked Pinot Noir grapes at Colmant, a wine farm in South Africa. The country estimates its cash balance for the fiscal year ending March climbed 25% from a year earlier to US$20bil. ─ AFP

SINGAPORE: Cash is king may well be the mantra for emerging markets this year.

With the relentless increase in Treasury yields pushing up global borrowing costs, developing-nation bond investors are scrutinising the cash reserves of governments as they look to pick future winners. Russia, South Africa and Indonesia may be among the best performers as they have each built up a sizeable backstop.