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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Bonds issued by some of the world’s poorest countries have been the best performers in sovereign debt markets this year, shrugging off the impact of high US borrowing costs, which often spook investors in riskier economies.
Emerging market sovereign bonds denominated in foreign currencies — mainly the dollar — and holding a triple B “junk” rating or lower have delivered a 4.9 per cent total return for investors this year. That compares with a loss of 3.3 per cent for an index of US Treasury bonds.
The gains have come as the resilience of the global economy surprised investors, while higher commodity prices have benefited countries such as oil exporters Nigeria and Angola and copper producer Zambia. Meanwhile, support from lenders such as the IMF has helped those in debt distress or default such as Sri…
