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3. februar 2022

To blend or not to blend in EM Corporate Debt?

By The Corporate Credit Team

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!


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