Three Strategies to Ride Out Inflation in Emerging Market Bonds

(Bloomberg) — The prospect of a global recession is sending money managers scrambling to rework their portfolios — nowhere more so than in emerging Asian bonds which have already been hammered this year by accelerating inflation and slowing growth.

Some of the investments that fund managers are favoring as a way to ride out the downturn include high-yield debt in Indonesia and Malaysia, relatively inflation-proof South Korean securities, and Asian investment-grade credit with exposure to China.