To blend or not to blend in EM Corporate Debt?

2021 saw multiple headwinds for EM Debt but EM Corporate Debt was less volatile given the shorter duration and more diversified/better quality asset base. We don’t think this will change in 2022 but it is worth remembering that European investors have €210bn invested in EM Sovereign Debt (Local & Hard Currency) and only €36bn EM Corporate Debt.

The EM Corporate Debt asset class globally is now the same size as the US HY market. As the asset class matures we believe investors will start to rely less on blended strategies (Sovereign & Corporates) and start to view EM Corporate Debt as a stand alone asset class.

We will shortly release an investor note which highlights why we think EM Corporate Debt deserves greater investor attention. Stay tuned!

Disclaimer

The above information is marketing material and has been provided for information purposes only. The information cannot be considered as financial advice or as an offer of any other investment advice. It is recommended that the investor contacts their own investment adviser for individual information about a potential investment, tax conditions et cetera before the purchase or sale of securities. Please note that past performance is no guarantee of future performance. The information was obtained from sources, we believe to be reliable, however we cannot assume any guarantee for its accuracy or completeness.  

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