The case for exotic assets: Sub-Saharan Africa, Cuba and Bosnia

With spreads on sovereign emerging market debt over US treasuries compressed at their lowest levels in history and returns on developing nations’ stocks likely to be at their smallest in four years, investors will have to focus on other areas in emerging markets in order to make sizeable returns. Funds with a strong stomach and a sense of adventure should maybe turn their attention to more esoteric markets such as sub-Saharan Africa, Cuba and Bosnia.