Case for Allocating to Emerging Market Debt - Considerations for Euro Investors
Research


General information

Title Case for Allocating to Emerging Market Debt - Considerations for Euro Investors
Type URL
Category Markt & Macro
Published 08-03-2021

Description

Emerging market debt (EMD) is a versatile asset. It offers equity investors risk mitigation potential with modest return dilution. For fixed income investors willing to move out the risk spectrum, EMD presents a significant yield pick-up opportunity as fundamentals continue to be relatively healthy, notwithstanding some notable deterioration in the fiscal backdrop during 2020. Investors need to be comfortable with headline and idiosyncratic risk, but in a low (and in some quarters, negative) yield environment, EMD offers significant potential for those investors willing to take a closer look.