What’s the fundamental outlook for emerging market debt?

Rob Drijkoningen, co-head of Emerging Markets Debt at Neuberger Berman, gives Fund Strategy his positive outlook for emerging markets (EMs): “growth is more sustainable, current account deficits have been greatly reduced and vigorous reforms are gaining momentum.” He explains this makes EM debt attractive because investors are underexposed to it, it is diversified, and it offers higher yield than developed market bonds.