Schroders: Why this is no Taper Tantrum 2 for EM bonds

Some financial markets have reacted as if Federal Reserve (Fed) Chair Jay Powell rang the bell for tapering of easy financial conditions at the 16 June policy meeting. Investors have naturally dusted off the playbook from the last episode, the notorious “Taper Tantrum” that began in May 2013.

Whether this is correct or not, it is necessary to start to think about the implications for markets. It is a particularly key consideration for emerging markets (EM), which were hit hard by the Taper Tantrum.

Read the Snapshot-article Why this is no Taper Tantrum 2 for EM bonds by James Barrineau

Co-Head of Emerging Markets Debt Relative.