Things in emerging markets are not always what they seem. In December 2023, Argentina elected as president Javier Milei, a rabble-rousing populist fond of brandishing a chainsaw on the campaign trail. Milei had a radical agenda, including dollarising the economy and abolishing the central bank – just the kind of policies that alarm investors.
Against a potentially higher-for-longer backdrop, a short-dated approach to EM corporate debt can provide an opportunity to pick up income, incremental yield and diversification, with less volatility.