Emerging Sovereign Bond Markets NEWS published by OECD (10/2010).
“An unprecedented boom in emerging market local currency debt is set for new records this year, as money managers flee low-yielding developed markets in search of higher returns, rising exchange rates and strong balance sheets.
As major economies such as the United States and Japan mull more money printing and prolonged zero interest rate policies fund managers are scrambling to increase exposure to emerging debt to ride resulting dollar and developed currency declines.
World finance leaders are seeking to tamp down simmering currency tensions at this week’s meetings in Washington but concerns about asset bubbles and capital curbs from countries seeking to stem the flood have so far done little to hold investors back. What were once considered ultra-risky assets are becoming the most sought after securities of 2010…”
