For EM investors, China’s renewed confidence in its technological and industrial base — set against the backdrop of a slowly recovering domestic macroeconomic cycle — offers a compelling diversification opportunity, particularly as the narrative of U.S. exceptionalism continues to come under pressure.
Local Currency EMD Offers Excellent Value
According to our valuation standards, Local Currency EMD benefits from high PRYs and attractive currency valuations while Hard Currency EMD is tainted by very low credit spreads and an overvalued US dollar.
