Shifting asset class behaviour is forcing a rethink of allocation approaches and fuelling demand for greater diversification. In this context, emerging market debt is highly relevant, but implementation is key.
EM debt has become an important component of the global debt market. The transformation has resulted in robust credit quality across a highly diverse opportunity set that’s ripe with alpha-capture potential.
Under-owned but now firmly on global investors’ radars, emerging markets are set to play a bigger role in portfolios. Compelling – and often mispriced – investment opportunities can be found across asset classes, but careful selection is increasingly vital.
After more than a decade of US dollar dominance, the currency’s extraordinary rally may finally be peaking. For EM debt investors, a weaker dollar could mark a long-awaited shift from headwind to tailwind.
For EM debt investors, a weaker dollar could mark a long-awaited shift from headwind to tailwind
Typically considered by asset allocators to belong to the same risk bucket as emerging market sovereign debt, the US high-yield market’s relative allure has increased. But the caveat ‘past performance is not a reliable indicator of future returns’ is particularly valid in this case – as the following analysis of valuations, fundamentals and market technical dynamics reveals.
An allocation to multi-sector credit does not automatically give investors the exposure to EM debt that they want or need.
The most widely followed global fixed income index includes emerging markets, but asset allocators looking to get full and meaningful exposure to the structural opportunity may need something different.
At a global level, the path immediately ahead could be choppy. But beneath the surface, currents that favour emerging markets are gathering force, explain Victoria Harling, Varun Laijawalla and Grant Webster.
Discover what the full EM debt opportunity set can do for you and how best to navigate it.
A disappointing decade in some areas of the asset class has left asset allocators questioning the investment case for EM debt. Grant Webster, Co-Head of Emerging Market Sovereign & FX, provides an analysis of two contrasting decades and suggests that asset allocators should not dismiss the asset class.
Grant Webster and Roger Mark look at how markets have reacted to uncertainty around this month’s historic elections in Turkey and find a more nuanced outlook for fixed income investors than recent market moves imply.
Following several encouraging US data prints, Grant Webster reflects on how the combination of cautious investor positioning and reduced risk of negative inflation surprises could have big implications for EM debt.
Following the big drawdowns seen in EM Debt this year, investors are rightly assessing the asset class and considering its future return prospects. Grant Webster addresses some of the key questions posed by EM Debt investors on his recent roadshow.
