Q: How do you expect emerging market bonds to perform vis-a-vis G7 bonds in the next 12 to 18 months?
A: We expect to see a rally in US and global government bonds starting in late 2006/early 2007 but this is based on the premise that in the near term US Treasuries will remain vulnerable to bouts of volatility as investors modify their inflation and future interest rate expectations.
Either way, we do not expect to see corporate or emerging market spreads widening significantly. Our base case
The week on Risk.net, July 7-13, 2018Receive this by email