[BlackRock and Morgan Asset Management bet on emerging market bonds to withstand global bond market turmoil] September 7th, as the government bond markets of major economies fell into turmoil, Morgan Asset Management and BlackRock's funds found unexpected investment advantages in emerging markets. Prices of government bonds fell in markets from the United States to Japan as expectations for interest rates to remain high increased again amid inflation and fiscal concerns triggered by rising energy prices. However, many developing countries have escaped unscathed, due to relatively controlled inflation, already restrictive monetary policies and, in some cases, stronger fiscal positions. Some emerging markets have higher real interest rates and stronger fiscal conditions, providing investors with a source of income and a safe haven from volatility in major global bond markets. Pierre-Yves Bareau, chief investment officer for emerging market debt at J.P. Morgan Asset Management, said the recent global bond sell-off "makes emerging markets more attractive and plays a role in diversifying the allocation of income sources." “The resilience of this class of assets is showing,” said Elina Theodorakopoulou, emerging markets debt portfolio manager at Manulife Investment Management. She believes that the recent bond market sell-off has brought relative investment opportunities to global emerging market bonds.