The FINANCIAL — The bonds of emerging countries, which have been following sounder policies than the United States and Eurozone, are attracting investors seeking to diversify risks as well as earn high returns,told gulfnews.
Emerging markets represent 10-15 per cent of the global debt market, up from six per cent in 2000, and even big money managers such as PIMCO and BNY Mellon in the United States, or Swiss private bank Pictet have jumped into the game.Brazilian bonds denominated in reals bring in returns of over 12 per cent per year currently.
Another plus, the fundamentals of these countries are generally more solid than for the United States or the Eurozone, which the Organisation for Economic Cooperation and Development said is entering a slight recession.
In a major role-reversal, emerging countries have now started lecturing advanced countries about the need to balance budgets.The International Monetary Fund says that emerging countries have on average public debts equivalent to 40 per cent of gross domestic product compared to 90 per cent for rich countries.
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