EM assets remain under‑invested, offering high‑carry opportu...

EM assets remain under‑invested, offering high‑carry opportunities

Despite recent inflows, EM remains below its historical allocation, leaving room for further capital.
High‑carry strategies, especially in Latin American currencies, are attractive given the current yield differentials.
The under‑investment thesis supports a continued bias toward EM assets.

PaulBloomberg Television01:04:55

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“EM IS UNDERINVESTED ASSET CLASS.” — Paul

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“LATIN AMERICAN CURRENCIES, GENERALLY GOOD CARRY AND ONE OF OUR FAVORITE TRADES HAS BEEN A LONG HIGH CARRY BASKET VERSUS LOW CARRY.” — Paul

Weak dollar dynamics, strong Asian fundamentals and under-investment create a fertile environment for high-carry EM currency strategies.

“EM currencies outperform due to weak dollar and low volatility”

“Strong fundamentals in Asia underpin EM currency strength”

“Latin American banks outperformed, offering a high‑growth niche comparable to gold and silver”