2012 was an exceptional year for emerging markets (EM), with double-digit returns in external and local sovereign debt, as well as corporate bonds and equities.
-Michael A. Gomez, managing director and portfolio manager, PIMCO
- The multiyear run of performance by emerging market (EM) sovereign external debt has been remarkable but residual valuations look either just fair (investment grade) or expensive (high yield) versus other comparable credits.
- We still see abundant opportunities in EM local markets, while EM equities are poised to benefit from a relatively low starting point for both earnings and earnings expectations.
