Bullish BlackRock says EM rally not done yet
By Paul Kilby
NEW YORK, April 26 (IFR) - BlackRock remains bullish on emerging market credit even after a rally by the asset class in recent months, top officials at the global asset manager said on Tuesday.
"We are taking a little bit of risk off the table, but we are still on the long side," said Pablo Goldberg, senior strategist for BlackRock's EM debt team.
"We will be more buyers on dips than anything else."
EM debt has turned around sharply since February, when portfolio managers were struggling to satisfy client needs after spreads had gapped out and FX values tumbled.
Spreads on JP Morgan's EMBI Global Diversified Index, which tracks the performance of EM sovereign debt, have tightened about 125bp since a recent peak of 507bp on February 11.
And BlackRock, which called an end to the three-year EM bear market earlier this year, thinks there is more upside left.
"Is the rally over?" said Goldberg. "We say no."