Why Emerging Market Debt?
Many emerging markets have introduced fiscal and monetary policies that have transformed their credit standing.
Global demand for EM debt has helped to create a US$1 trillion+ market, improving liquidity and reducing volatility.
More yield potential
EM debt still commands a risk premium over developed market debt – even when fundamentals are broadly similar.
The sheer choice of issuers, sectors, regions and credit ratings provides opportunity across a vast risk/reward spectrum.
EM debt continues to exhibit low correlation with developed markets, providing valuable Portfolio diversification.