World’s Riskiest Bonds Lure Traders After Tariff Turmoil

Investors are dipping their toes back into some of the riskiest emerging-market bonds, snapping up high-yield government debt that has been made cheap by tariff-induced volatility.

Money managers including Ninety One UK Ltd., Vontobel Asset Management and TCW Group Inc. argue that some prices have fallen to a level that justifies taking on the risk of sovereign defaults, which they say has been overblown.