DoubleLine Sees 'Virtuous Loop' in Emerging Markets Amid Middle East Tensions

DoubleLine's Bill Campbell sees opportunities in emerging markets due to structural convergence with advanced economies. Despite escalating tensions in the Middle East, Campbell believes that a "virtuous feedback loop" may emerge if the dollar slides and central banks continue rate cuts. Emerging-market local fixed income presents value, especially for investors seeking relief from stretched valuations in developed markets. Campbell highlights attractive nominal carry and real yields in countries like Brazil and South Africa, and notes that investors have largely overlooked the gains in emerging markets.