Emerging market debt markets are the most profitable in the world

While there is a dispute between the financial systems of the United States and Europe, while investors are determining the profitability of investing in dollars or euros, there are sectors in the global investment market that bring much greater profits. The debt market of countries falling under the category of emerging markets has become the most profitable for investors looking for where to invest capital. This is especially true now, when the NASDAQ fell by 19% compared to the beginning of the year.

The Financial Times newspaper, citing specialists from the Foreign & Colonial Emerging Markets investment fund, notes that for the second year in a row, the profitability of debt markets in countries with emerging economies leaves far behind the high-yield markets of the United States and Europe. This year, the profitability of financial transactions with debt obligations of developing countries averaged 9.6%. For example, investing in US debt is √3.3%.

The recent situation in the oil market has made debt obligations of oil exporting countries especially attractive. The income of Russian debt holders was, for example, almost 50% in 2000. Analysts expect that, despite possible fluctuations due to the US presidential election and unrest in the Middle East, emerging market debt markets overall will remain attractive to investors.