Pictet AM sees red flags for EM corporate credit

Emerging-market fixed income is growing in appeal as an asset class, but investors are wary of higher volatility in EM corporate credit and local-currency bonds, says Pictet Asset Management. Nevertheless, on the whole, investors are readier to take longer-term allocations to EM fixed-income securities than they were in the past. Simon Lue-Fong, head of emerging-market debt at Pictet Asset Management, points to a higher level of comfort now with longer-term EM debt maturities of…