A short-duration allocation to emerging market (EM) corporate debt offers the potential for attractive carry, incremental yield and portfolio diversification—while reducing interest rate sensitivity and preserving flexibility to reposition as monetary conditions evolve.
The rapid adoption of artificial intelligence by businesses makes its impact a critical consideration in assessing the risk and return potential of lower-rated credits.
Yields on Japan’s two‑year bonds touched their highest levels since 2007, on market expectations of a rate hike later this month. While the short end (2‑year) is more sensitive to policy‑rate moves, yields on 10‑year and 30‑year bonds have also risen amid concerns about the government’s expansionary fiscal policy and high public‑debt levels.