EM junk debt rally set to snap


A PLUNGE in global risk appetite is pushing emerging-market (EM) investors into higher quality dollar bonds, signalling a years-long rally in junk debt from developing nations might be at an end. 

Money managers from Pinebridge Investments to T Rowe Price and TCW Group are scooping up sovereign notes from countries including Mexico, Colombia and South Africa, touting their high liquidity, market access and fair valuation.

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