Traders Dig In on Favored Emerging-Market Bet Roiled by Fed.

Money managers are still optimistic about local-currency debt from developing nations, despite recent challenges. The odds of higher interest rates in the US and a strong dollar have affected emerging-market bonds, but some investors believe that the trade is still attractive. Delays in interest-rate cuts by the Federal Reserve have widened real rates in emerging economies, offering better yields for investors. While the local-currency bond trade has turned sour for some, there are still selective opportunities in countries like Mexico, Brazil, Egypt, and Turkey. [Extracted from the article]