Experts of the largest bond fund PIMCO believes that the situation in the region in developing countries has improved significantly in recent months - based on AMarkets.
Factors that will work for the growth of the attractiveness of developing countries in the region:
1. The negative trend on corporate profits in the region should soon enter into positive territory. Judging by the performance MSCI EM, ACWI indices, indices P / E - all of them are now 25% lower than those of developed countries. At the same time developing regions offer more attractive rates of financial flows (cash flow) as compared to the developed world - 8% compared to 6%.
2. Many developing region currencies supported greater liquidity compared with the developed world. So, at first a greater chance to survive with dignity turbulence periods, despite the fact that developing the economy higher rates of debt load. According to PIMCO, the most interesting options - the Mexican peso and Russian ruble.
3. The yield curve rates on financial instruments show a nice dynamic. This is especially true of Mexico and South Africa.