With the inflation and geopolitical fogs around the world dissipating, and a monetary policy pivot potentially in the cards, 2023 is shaping up to be a promising year for emerging markets debt.
Emerging Markets Debt: Navigating A Shifting Landscape
Emerging Markets are rife with opportunity, but managing risks is critical.
From COVID to trade tensions to geopolitical conflict, there are a number of risks facing emerging markets debt investors. But attractive opportunities continue to materialize across the EM spectrum, including in local currency, sovereign hard currency and corporate debt. The key to capitalizing on them is selectivity.
Emerging markets can offer a potential yield premium versus developed market debt.
Challenges will persist, but not all countries and companies will be equally impacted.
Volatility often leads to price dislocation, creating value opportunities for investors.