Those ratings have come from fundamental improvements in monetary and fiscal policy. Deficit spending has declined considerably in emerging-market countries.
Quotes about emerging-market (5 Quotes)
I wouldn't be surprised if the institutions, such as pensions and endowments that have been plowing so much money into emerging-market funds, will see this pull back as an opportunity to plow more in. It doesn't feel like the pull back will continue for too long before investors will again rediscover strong emerging-market growth.
A bullish orientation towards the front-end of the curve therefore should begin to dominate bond strategies, combined with an avoidance of anything that carries those low-risk premiums that Greenspan finally diagnosed, ... Those assets include real estate, equities, high yield, corporate, and some areas of emerging-market debt.
Emerging-market bond funds did well this quarter, up 3.6 on average, for the same reason as emerging-market stocks. As commodity prices rose, money from the developed world flooded such commodity-rich countries as Russia and Brazil, strengthening their fiscal balance sheets and the credit quality of their bonds. Consequently, investors became less fearful of owning them. Many so-called emerging markets have long since emerged, ... Russia now has an investment-grade credit rating and with oil where it is right now, probably more money in the bank than the U. S.
There was a perception that the emerging-market problems aren't over and concern that may Brazil devalue.