(Bloomberg) -- Emerging-market local currency bonds are offering spreads near their widest since 2011 over developed-market government debt, even after an almost 11 percent rally this year, according to a Bloomberg Barclays index. Dwindling inflation across many developing economies is offsetting the drop in nominal yields and making them attractive investments, according to Colin Dryburgh, an Edinburgh-based investment manager at Kames Capital Plc. While a stronger dollar poses a risk to holding local debt, many emerging-market currencies still offer value, he said.
--With assistance from Garfield Reynolds
To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net.
To contact the editors responsible for this story: Tomoko Yamazaki at tyamazaki@bloomberg.net, Alex Nicholson
©2017 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
