Pimco, GMO Refine EM Playbook as Fed Cuts Set to Shake Up Market.

Top-performing emerging-market bond managers are adjusting their positions in anticipation of a significant interest rate cut in the US. Investors are focusing on local-currency debt and select reform stories in countries like Ecuador and Argentina, which are expected to benefit from the Federal Reserve's rate cuts. Despite volatility in emerging markets, funds from Pimco, GMO, and Neuberger have outperformed their peers, returning over 16% in the past year. The expectation is that lower US rates will attract more money into emerging markets, potentially triggering a domino effect of capital inflows. [Extracted from the article]