US bond yields leave emerging markets in the cold

Moody's estimates the developing world needs $1.3 trillion by 2030 to combat global warming

- Bloomberg

Persistently high US bond yields will force private investors to turn their backs on emerging markets desperately in need of financing to fight global warming.

That's according to Srini Nagarajan, head of Asia at British International Investment, which is the UK government's development finance unit.

"If risk-free bonds are giving you 4-5%, the question becomes 'why would anyone take emerging market risk?'," he said. "Interest rates have to come down for fund managers to have an emerging market allocation which goes up."