All Emerging Market Debt articles
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White papersHow emerging market debt is adapting to a sea of change
Emerging market debt (EMD) has historically been viewed as a tactical allocation, but structural improvements in policy credibility, fiscal discipline, and market depth now position it as a core component of a diversified portfolio. We think EMD is attractive for investors looking for a stable allocation to an asset class that is supported by strong growth, increasing credibility, and diversification.
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White papersMarket Outlook - Fixed income: Monetary policy should bolster markets
Fixed income markets should benefit from continued central bank easing in 2026. We expect lower interest rates in the US as policymakers respond to weaker labour market trends, and lower rates in Europe because of further declines in inflation.
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White papersWhat is driving EM corporate debt outperformance?
Emerging market (EM) corporate debt has delivered robust returns YTD and has outperformed its developed market (DM) counterparts. What factors are at play and where do we see value?
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PodcastWhy Hard Currency Emerging Market Debt is Back in Focus
Emerging market debt has weathered a long stretch of tight financial conditions—marked by a strong US dollar, higher global rates, and uneven post-pandemic recoveries. With the dollar softening and policy rates beginning to ease, investors are warming up to hard currency EM debt as a potentially attractive source of diversification and carry.
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White papersUS debt and dollar dominance
The US has long defied conventional economic wisdom by sustaining persistent fiscal and trade deficits without triggering a dramatic sell-off in government bonds or a collapse in its currency.
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White papersCredit spreads: Is there something you’re not telling me?
Corporate bond markets are showing signs of complacency, with tight spreads masking deep macroeconomic and geopolitical risks. In a market facing elevated government debt levels, questions around central bank independence, as well as both macro and micro economic risks, Harriet Habergham unpicks how bond investors can navigate this environment.
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PodcastTalking Heads – Flexibility in global bonds with absolute return
James McAlevey, Head of Global Aggregate and Absolute Return explains how his team applies the flexibility of an absolute return approach to generate returns regardless of the overall environment in bond markets.
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White papers9 advantages of emerging market debt
Globally, yields on high-quality assets feel thin once adjusted for inflation and tax. Corporate balance sheets look sound, yet spreads are tight and carry is limited. Under such circumstances, emerging market debt offers a clear payoff profile.
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White papersEM debt: Cautious confidence in a shifting landscape
As we enter the final quarter of 2025, emerging market (EM) debt continues to demonstrate resilience against a complex global backdrop. Despite rising policy uncertainty, geopolitical tensions, and evolving trade dynamics, EM debt has largely outperformed other fixed income asset classes so far this year. In this note, we evaluate the drivers behind EM debt’s strong returns, assess the sustainability of current trends, and outline the key risks and opportunities for the remainder of the year.
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White papersEMD report. The end of exorbitant privilege?
The shift in U.S. trade policy under the new administration has exposed deep structural issues in developed markets (DM). While initial fears of a collapse in asset flows were exaggerated, the long-term fundamentals are shifting. Post-global financial crisis, DM governments absorbed private sector debt, creating a cycle of easy money and rising public debt. The pandemic intensified this trend, pushing debt-to-GDP ratios beyond national income in many DM countries.
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White papersEmerging market debt: investing at the cutting edge of global change
The emerging market debt (EMD) asset class has expanded dramatically over the past 30 years, when it consisted of a small set of countries in Asia, EMEA and Latin America. At the inception of JP Morgan’s sovereign index in 1995, there were eight countries with USD government bonds included. The investible universe now consists of 109 countries with bonds issued in hard and local currency by governments, quasi governments and corporates.
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White papersChanging tides: how emerging market debt is adapting to a sea of change
Emerging markets (EM) have proven proficient in adapting to an ever-changing geopolitical and macroeconomic landscape and, despite the fears surrounding President Trump’s tariffs, have navigated the impact well. The diversification of the EM universe has proven a cushion for fixed income investors.
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White papersEmerging market investment grade bonds: a strategic anchor in today’s uncertain world
Emerging market investment grade (EM IG) bonds, considered the defensive corner of fixed income, offer the potential for steady returns from higher yields and lower volatility. These bonds are underpinned by strong fundamentals, broad regional and sector diversification, and a track record of resilience during financial crises. Active managers can capitalize on inefficiencies within the EM IG space, presenting a compelling investment opportunity.
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White papersEmerging markets fixed income: Past, present and future
Over the last decade, emerging market (EM) sovereign and corporate hard-currency debt outstanding has grown significantly, with just over half of it rated investment grade. Over the same time period, EM local currency debt for sovereigns and corporates has grown to become the dominant segment of EM debt.
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White papersThe end of exorbitant privilege? EMD report Q3 2025
Fast-developing economies are transforming global markets.
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White papersEmerging Market Bonds: Moving in the Right Direction
A weaker dollar and FED easing cycle are fueling strong performance and renewed inflows into emerging market fixed income. Solid fiscal reforms and improving credit metrics further enhance the appeal, especially in key markets within a heterogeneous universe.
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White papersEM debt: Cautious confidence in a shifting landscape
As we enter the final quarter of 2025, emerging market (EM) debt continues to demonstrate resilience against a complex global backdrop.
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White papersRethinking emerging market debt: A changing risk landscape
Recent turbulence emanating from the US has demonstrated a change in attitudes. Despite evident volatility, the dollar weakened, contrary to what would typically be expected in times of stress. The perception of risk between emerging markets and developed markets are no longer black and white. So, are investors now rethinking emerging markets?
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White papersWitnessing India’s Transformation
A recent visit reaffirmed our conviction as to the pace of change in this key economy.
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White papersUnmasking the potential: navigating opportunities, myths and strategies in EM Private Credit
Private Credit has grown c.10-fold since 2008, but funding shortages remain particularly pronounced in Emerging Markets (EM), which hold c.90% of the global population and c.50% of GDP but less than 10% of Private Credit AuM.
