Emerging markets hard-currency bonds could remain volatile given the challenging global macroeconomic backdrop, but we see pockets of opportunities. In particular, metal exporters in the frontier markets space are underappreciated, in our opinion. That’s because regulation and consumer preferences are creating demand for clean transportation, and we believe this demand will drive strong growth in what we call the metals of the future: copper, aluminum, nickel, cobalt, and lithium. This could bolster the outlook for copper exporters, and could also improve the prospects for markets with burgeoning mining investments.
