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
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.
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.