Cash Is King for Emerging Markets Facing Off With Yield Surge

  • Russia, South Africa have announced cut in planned issuance
  • ‘All boils down to flexibility and buffers,’ Fim Partners says
Photographer: Nicole Tung/Bloomberg
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Cash is king may well be the mantra for emerging markets this year.

With the relentless increase in Treasury yields pushing up global borrowing costs, developing-nation bond investors are scrutinizing the cash reserves of governments as they look to pick future winners. Russia, South Africa and Indonesia may be among the best performers as they have each built up a sizable backstop.