Top three emerging market themes

In either the recession risk or the resilient growth and stubborn inflation scenarios, the high level of nominal and real rates gives investors a good alternative to get yield when investing in short-dated sovereign bonds, hard currency, or emerging FX, says Neuberger Berman. Meanwhile, advanced inflation, relative to developed markets, makes duration in EM very attractive. Duration in emerging markets, has already given good returns, it is still a good theme to play. Finally, spreads in hard currency are also a key theme. Sovereign bonds remain very wide, especially in the higher yielding...