84% of fund managers shift focus to emerging market bonds

A Bank of America survey showed that 84% of fixed-income fund managers prefer emerging-market local-currency debt, up from 38% recorded in August.

These bonds also outperformed their dollar-denominated counterparts by more than three percentage points since the end of June, benefiting from higher yields and stronger local currencies.

In contrast, the largest emerging-market dollar bond funds saw outflows exceeding $800 million during September.