- While we believe overall market conditions should remain favorable for emerging markets (EM) debt, the pandemic created idiosyncratic risks and diverging prospects across EMs.
- The EM debt universe consists of three main types of debt: 1) sovereign debt; 2) quasi-sovereign debt; and 3) corporate credit.
- Despite an improvement in bond liquidity, EM debt remains under-researched and not properly understood.
- We have a strategic overweight to frontier markets because we believe the risk premium there is mispriced.
For further details see:
5 Differentiators In Emerging Markets Debt