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From Sagar Chakraverty, Opalesque Asia:

Today investors are putting their money in emerging markets because of increasing sovereign credit risks amidst deteriorating fiscal situations in the developed world.

This has made developing nations a preferred investment destination, according to PIMCO’s Feb-10 edition of ”View points” expressed by senior vice president, Tony Crescenzi . The Pacific Investment Management Company (PIMCO) is one of the largest global bond managers, that also runs the world’s largest mutual fund, ‘Total Return fund’.

So what is investors’ evaluation criterion for investing? It is the debt-to-GDP ratio which matters now. For many emerging nations this ratio is far better than they are in the developed world. For example, the Chinese economic strength can be gauged from its stimulus measures, which are expected to increase its debt ratio by only 3% of its GDP in 2010, whereas the gross public debt in OECD countries is projected to almost reach their total GDP this year and even exceed it in 2011 (see Opalesque exclusive here).

Increasing credit default swap prices heighten sovereign debt fears In the first week of February, stock markets in Eu......................

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