Part of the success of emerging markets so far this year has been that they have not performed as badly as people thought they would. For example, oil started the year at $30 and has gradually snuck upwards, directly benefiting the oil producers such as Brazil and Venezuela before then spilling over into other credits.
My conversation with M&G Emerging Markets Bond manager Claudia Calich added in the fact that there are less fears about China now than there were at the start of 2016, and that outflows into the asset class have slowed if not quite stopped.
Quite simply, it is hugely positive that things are not quite as bad as they could be…
