Bringing you live news and features since 2006 

Bargain hunters taking close look at emerging market debt, says Market Vectors’ Fran Rodilosso


Bargain hunters are slowly moving back into emerging market (EM) debt, with local currency funds recently seeing their first net inflows in more than nine months, says Fran Rodilosso, fixed income portfolio manager for Market Vectors ETFs.

“Investors have stopped the wholesale selling and are starting to ask themselves where they can find value in EM debt,” says Rodilosso. “I think there are many places to look for opportunities – hard currency or local market, investment grade or high yield, sovereign debt or corporates. This suggests sentiment may be turning.”
Rodilosso notes that, in spite of the positive flows, there are still reasons to remain cautious, as recent troubles with Russia and Ukraine demonstrate. In addition, China remains a perennial worry for many investors, who cite that country’s slower growth, excessive leverage, liquidity squeezes, and weakening currency as evidence of potential future trouble.
“There has been a lot of attention paid to recent corporate defaults in China,” Rodilosso says, pointing out that, to date, these are few in number and involve smaller companies. “We expect to see more of these and accept it as a part of the rationalisation of the local market and the normalisation of the flow of capital. There is a long way to go, and those EM debt investors who want to avoid exposure to China may find ample opportunities elsewhere.”

Latest News

The August data from LSEG Lipper shows that the global ETF industry held USD10,547.4 billion in assets under management on..
HANetf has announced that their European Green Deal UCITS ETF (ticker: EUGD) has reached USD52 million (EUR49.9 million) in assets..
Legal & General Investment Management (LGIM) has announced the launch of the L&G Global Brands UCITS ETF. The firm writes..
Vienna Stock Exchange has launched three new thematic indices: CECE Reshoring, CECE Commodity Producers and CECE Clean Energy, writing that..

Related Articles

John Ciampaglia, Sprott Asset Management
Geo-political tensions and concerns about hitting clean energy targets have brought the focus back onto nuclear power in recent months,...
Nick King, Robeco
Europeam investment management giant Robeco has announced the appointment of Nick King as Head of Exchange Traded Funds (ETFs), in...
Kristof Gleich, Harbor Capital
Harbor Capital burst onto the ETF issuance world in 2021 and now has USD1.1 billion in assets in ETFs. But...
Europe’s thematic ETF provider, Rize ETF, has been acquired by ARK Invest LLC, the parent of ARK Investment Management LLC,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by