The investment manager said that despite a series of ‘one-off disruptions’ including the Ukraine crisis, middle east troubles and Argentina’s default emerging market debt rallied significantly between February and June this year.
It argues that this performance demonstrates the strength and diversity of the EM debt universe.
While the performance during the rest of the year is not likely to be as dramatic Neuberger says it remains constructive, particularly on local currency debt.
Further recovery in emerging markets will likely be driven by the export sector as developed markets continue to strengthen.
Nations exporting largely to the Eurozone and U.S such as Korea, Mexico, Taiwan and emerging Europe should be the main beneficiaries of cyclical improvement in global growth, Neuberger said.
