Mark Baker of Standard Life Investments favours reforming sovereigns such as Indonesia over governments that are not on the same track.
Claudia Calich, fund manager at M&G Investments, answers three questions on emerging market debt.
But the surge in emerging market bond prices this year is forcing investors to be more discriminating.
A “third wave” in the global financial crisis could come from emerging markets, said Bob Baur, chief global economist for Principal Global Investors.
Overall fund selector sentiment towards credit, be it government, corporate or high yield bonds, is at all-time lows and even sinking further down into negative territory. But demand for emerging market debt shows a diverging trend, with appetite surging in the first half of this year.