"Until you have interest rate concerns come back, which is likely a next-year story, I think emerging markets broadly should be ok," he said.
Read More The world is running short on ... green bonds
"From a valuation perspective, if you look at the gap between emerging markets and developed markets, it still looks attractive," he added. "If you compare where Asia trades versus the U.S. and Europe, or where Latin America trades versus the U.S. and Europe, there's still a lot of differential, which I think should keep coming down over the next three to six months," Agarwal said.
Pimco is also sticking with emerging market bonds after turning positive at the end of 2013.
"We still think that there will be good upside opportunities," Eve Tournier, head of pan-European credit portfolio management at Pimco, said in a blog posting last week. "Emerging market debt continues to represent an important source of yield and potential growth. Many emerging market debt issuers with strong underlying fundamentals and high growth prospects offer higher yields than their developed market counterparts."
Read More Five bond market risks to worry about: Pimco
For example, she said Russia, particularly its quasi-sovereign corporates, offers "compelling relative value" as the selloff on the conflict with Ukraine may be overdone.
Others are only now getting in to the sector.
"We have shied away from emerging market bonds for many, many years, but this year is the first time in the last four years that we've started buying emerging market bonds again," said Jonathan Liang, senior portfolio manager for fixed income at AllianceBernstein. He likes U.S.-dollar denominated corporate and local-currency government bonds, citing a preference for Brazil and Mexico.
"Local currency debt in Brazil is giving you low double-digit rates. These are government bonds we're talking about. We think it's not a bad deal," he said. He also noted that U.S. dollar denominated Brazilian corporate bonds are out-yielding U.S. corporate bonds.
—By CNBC.Com's Leslie Shaffer; Follow her on Twitter @LeslieShaffer1