Lazard is treading lightly when investing in emerging-market debt, staying away from high-yield bonds and keeping allocations to this asset class low amid rising US Treasury yields, a strong dollar, and geopolitical tension.
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Instead, the company is leaning towards investment-grade credits, noting particular concern with debt from Argentina.
Lazard is also wary of high-yielding bonds from Egypt, Kenya, and Nigeria. The firm has identified that 33 out of 76 countries are facing yields at or above 9.5%, leaving them effectively shut