OutlookWe maintain our positive outlook for emerging markets debt. Within this asset class, we believe that local currencies will be the main contributor to performance in 2013, and that they will be supported by superior growth rates verses their developed country counterparts. In addition, it's likely that the Fed and ECB will continue to pursue their highly accommodative monetary policies for the foreseeable future. In contrast, many emerging market central banks appear closer to ending their easing cycles. Against this backdrop, the yield difference between local emerging and developed country currencies should remain stable or increase, which should be beneficial for local currencies. Elsewhere, we feel that US dollar-denominated spreads are now fairly valued and, therefore, we pared our allocation in December. We have a more neutral outlook for local bonds in 2013.
Global High Income Fund Inc. – Fund Commentary
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