UBS Asset Says Investors Should Be Buying EM Distressed Debt

Distressed debt from emerging-market economies is a buy for UBS Asset Management as governments push through with reforms and due to greater support from multilateral organizations.

If investors haven’t been buying emerging market distressed debt, they should be, Shamaila Khan, head of fixed income for EM and Asia Pacific said in a Bloomberg Television interview. That’s because emerging market economies have used the crisis as an opportunity to pass difficult structural reforms, implement fiscal discipline and currency adjustments at a high inflation and political cost, according to Khan.

Egypt, for example, “serious about privatizing,” Khan said, referring to the ...