Many investors approach EM hard-currency debt primarily through sovereign bonds, often overlooking corporate credit. This bias reflects sovereigns’ greater liquidity, familiarity, and longer track record. Yet, while EM corporate credit has delivered comparable returns over time, it has historically produced a stronger risk-adjusted returns profile - making a compelling case for blending both asset classes in a well-diversified portfolio.
With more than four weeks having passed since the first strikes on Iran, markets are increasingly focused on whether, and how, this conflict ultimately comes to an end.