Stabilising emerging markets offer attractive opportunities

Emerging market (EM) debt has high liquidity, with the tradable dollar-denominated market worth more than $220bn.

As well as a growing euro-denominated bond market and increasingly accessible local markets, EM debt has low correlation with other asset classes. Country-cross correlations have fallen recently lowering contagion risk.

There is a developing derivatives market and a rapidly broadening investor base, deepening the market and introducing exploitable, competing investor interests. Thr