Posted 1/28/2024, 1:00:00 PM
Emerging Market Debt Attractive as Traders Bet on Fed Rate Cuts and EM Central Bank Easing
- Traders betting on emerging market debt as the Fed is expected to cut interest rates, boosting those markets
- Weakening dollar and potential Fed pivot to invite further emerging market central bank easing
- Money managers tout 2024 as an important moment for emerging market local currency debt
- Latin America offers especially attractive opportunities as central banks have already started cutting rates
- Even investors skeptical of emerging markets reducing short positions, getting in on the trade