How to manage emerging market trading costs to improve returns

The challenges of trading emerging markets (EM) are offset somewhat by the higher yields available, but even more so when the traders can mitigate trading costs through better execution approaches.

Spreads in EM bond markets are more affected during periods of volatility than developed markets, making the role of the buy-side trader vital in delivering investment goals. The traders themselves need access to the right data, the right relationships with dealers and the right electronic trading tools to find the optimal pathway to best execution.

Tom Nickalls, fixed income trader at asset manager Ninety One and Craig McLeod, head of emerging markets at MarketAxess outline the key elements that can help investors get better EM returns.

Published on March 15, 2021

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