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5 reasons why EM bonds are hot: Fasdal

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Simon Fasdal, head of fixed income trading at Saxo Bank, gives five reasons why emerging markets bonds are attractive at the moment. 

  1. Weak US payroll numbers were an adrenalin kick to emerging market bonds
  2. There is still room forĀ“ upside in emerging market bonds because of a yield gap between other bond classes and emerging market bonds
  3. Asset managers and hedge funds could regain interest in emerging markets later this year
  4. Brexit scare could make investors seek opportunities outside Europe
  5. European bonds are not attractive because of negative yields and continuing quantitative easing from the European Central Bank. Investors could seek other opportunities in the emerging markets