Morningstar: Local currency-denominated emerging market debt is expected to bring returns.

Morningstar stated in a prospect report that it favors local currency-denominated emerging market debt, from which active managers can target higher yield parts. The company said that the average yield of local currency-denominated emerging market sovereign debt is around 6.3%. However, Morningstar also stated that some selected investment opportunities can provide a total yield of over 9% and have additional potential for currency appreciation.