Emerging market sovereign debt in demand

Fund analyst Kate Hollis explains that while most fund managers say they expect the euro to survive, "they don't see a lot of value in second-rank OECD sovereign bonds or second-tier supranationals. As a credit view, many regard good-quality EM US dollar- or euro-denominated government bonds as a better bet than those issued by the likes of Greece or Portugal." Fund managers reported being underweight or out of the eurozone periphery during 2011 and a number of funds had non-eurozone Europe or EM debt to compensate. "The team at BL (Banque Luxembourg), for example, has been adding increa...