Rising interest rate yields in emerging markets could pose a risk for investors, Gemma Godfrey of Brooks Macdonald Asset Management said Wednesday.
Treasurys in select emerging markets that pose the greatest risk are those with the highest foreign ownership. Withdrawals could affect those economies, she said. "The term that's being bandied around at the moment from the likes of Morgan Stanley is 'the Fragile Five.' That's Indonesia, India, Turkey, Brazil and South Africa."
On CNBC's "Halftime Report," Godfrey, head of her firm's investment strategy, noted that Indonesia recently saw its third rise in rates since August and still faces inflationary pressures.
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