Live Updates > Live Update Details
2025-10-29 23:30:40
[Vontobel: Emerging Market Bonds Should Be Included in Fixed Income Portfolios] Vontobel's Pascal Koeppel suggests that emerging market bonds should be included in fixed income portfolios because developing economies often benefit from a weaker dollar and lower US interest rates. He notes, "Holding a small amount of government bonds, corporate bonds, and emerging market bonds in a bond portfolio is a good strategy." Vontobel's wealthy clients still prefer to invest a significant portion of their funds in short-term investments. Koeppel advises them to appropriately extend their duration to lock in yields that are bound to decline in the near term. He cites the experience of Switzerland as an example, pointing out that Switzerland's relatively high yields quickly fell to zero or even lower. "We recommend shifting some cash positions."
