Emerging Markets

The US Investment Grade Fixed Income Dilemma

Emerging Market Investment Grade Debt: A Solution to the US IG Fixed Income Dilemma

Aug 10, 2020

10 minutes

Emerging Market Investment Grade Debt: A Solution to the US IG Fixed Income Dilemma
The pandemic has upended the fixed income landscape for many investors, leaving them wrestling with how to reach return targets without taking on significantly more risk. Many have turned to lower credit quality or illiquid asset classes to combat this, while maintaining a healthy overall exposure to investment grade.

We believe there is another way: emerging market investment grade corporate debt.

In this new paper, we outline why we believe this fast growing and increasingly diverse US$1.4 trillion asset class, which has higher yields, lower duration, and less leverage than US investment grade, could provide a high-grade complementary antidote to the fixed income dilemma.


Read the paper


Specific Risks

Emerging market: These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems. Investments carry a risk of capital loss.

General Risks

All investments carry the risk of capital loss. The value of investments, and any income generated from them, can fall as well as rise and will be affected by changes in interest rates, currency fluctuations, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which the investment strategy invests. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results.

Authored by

Victoria Harling

Strategy Leader, Emerging Market Corporate Debt

Alan Siow

Portfolio Manager

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

All rights reserved. Issued by Ninety One.