While the authors do not attempt to pinpoint the peak in inflation, they believe that local emerging markets rates are starting to look attractive.
“We are excited to have a strong process in place to play long duration EM local rates when the trend decisively turns,” said Shaykevich, senior emerging markets portfolio manager in FIG. “We believe we are close to this point.”
Learn more. Read Higher inflation is creating an opportunity in emerging markets. (5-page PDF)