Rebounds to come

Question: What emerging market regions offer the best opportunities?

Ihab Salib: One area in emerging markets that really got hit hard this year with the risk-off environment is the EM high-yield sector. So some of the frontier markets and some of the lower rated credits within EM. We think the markets are pricing in scenarios of much higher default probability, and much lower recovery conditions. So, we think that's too pessimistic, and we think that if there's an area that you're likely to see a rebound, will be in that area. Secondly, I think the economies that are more diversified, and that are not necessarily reliant on just one commodity, like Brazil for example, are likely to do well in the coming months, and next year as well.