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Emerging Markets Debt - Opportunities and Dilemmas

White Papers for EM Investors, Allocators and Fund Managers

In the last 10-15 years, EM debt has transformed into a mainstream asset class, but benchmarking and allocation decisions remain a complex process. In the papers below (all free to access for Savvy Investor members):

  • Eaton Vance outlines the flaws in an index-oriented approach to EM debt, and examines the case for an unconstrained, risk-factor based approach.
  • Aberdeen takes investors on a guided tour through the history and practice of emerging markets debt. 
  • BNP Paribas argues that the fundamentals for EM debt are strong, and a pick-up in US inflation is likely to result in investors moving out of US dollar debt and into the EM complex.

India spices EM fixed income white papers

Emerging-market debt: Navigating the allocation dilemma (Eaton Vance, 2017)
EM debt offers a unique source of income and diversification. However, successful investment in this complex asset class requires specialist expertise and a keen awareness of its many idiosyncrasies and potential pitfalls.

Emerging markets debt: Here and beyond (Aberdeen Asset Management, April 2017)
In the current low yield environment, fixed-income investors are venturing further afield to generate additional income. In this engagingly piece, Aberdeen introduces investors to the history, theory and practice of investing in Emerging Markets debt.

What makes EM Fixed Income attractive – even under Trump? (BNP Paribas, April 2017)
It has not gone unnoticed globally that Donald Trump is now in the White House of the United States of America. Love him or hate him, his Presidency and policies are likely to have implications that resonate around the world.

ESG issues significantly impact emerging debt returns (Robeco, 2017)
Over the past years ESG analysis has given valuable information in the selection of countries in which to invest. Differences in ESG profiles are fairly substantial between emerging countries and changes can happen quickly.

An Examination of Emerging Markets Sovereign Defaults (Lazard, May 2016)
Creditor concerns about a new wave of emerging markets (EM) sovereign defaults have started to rise as EM economies face slowing growth and downward ratings pressure.

Asia Credit - A Separate Allocation (Nikko AM, Jan 2017)
Should Asian Credit be treated as a separate allocation to Emerging Market allocation? The authors of this paper think so.

Global Investors' Survey: Accessing Mainland China's Onshore Bond Markets (2016)
This paper presents the findings of a recent global survey of investors with an interest in Mainland China's onshore bond market. It helps investors better understand how to access the market. It also discusses concerns and possible changes and developments.

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