Foreign ownership of Emerging Market local currency bonds has been on the rise since the Lehman default but has also caused the asset class to become more volatile.

The Lehman bust – and the financial crisis – forced the central banks in the developed world to keep interest rates low in order to spur economic growth. Since then, yields on developed market bonds have been falling. This created a huge inflow into higher yielding local currency Emerging Market bonds.  There was indeed a hunt for yield. 

I work in finance as a portfolio manager. From time to time, I will blog about macroeconomics, finance, emerging markets and politics.

All in all, I have 15 years of experience working in finance and investing money. I received an MSc in Economics from London School of Economics and a BSs in Economics from the University of Copenhagen.