Iframe Test
Why now for emerging market debt?
In a world of diverging growth and shifting rate cycles, Emerging Market Debt (EMD) stands out as a resilient and rewarding opportunity. Despite persistent scepticism and a history of global crises; from the Asia crisis to COVID-19, EMD has consistently outperformed traditional fixed income assets like US High Yield and Treasuries over the past three decades.
As the global rate cycle peaks and developed markets face slowing growth, EMD offers attractive yields, improving fundamentals, and diversification benefits. The data tells a compelling story: even amid volatility, EMD has delivered strong, long-term returns – defying the myth of fragility.
Now is the time to reconsider EMD, not as a risk, but as a resilient performer in your fixed income strategy.
Despite all the headwinds/negative perception a strong performing fixed income market
Note: Total Return of J.P. Morgan EMBI Global Diversified Composite Index (JPEIDIVR Index), ICE BofA US Cash Pay High Yield Index and ICE BofA US Treasury Index, for a $100 Original Investment since 1993.
EM External Debt: JPEIDIVR Index, US High Yield: J0A0 Index, US Treasuries: G0Q0 Index.
Source: BofA Global Research, Bloomberg, J.P. Morgan EMBI Global Diversified Composite Index, ICE Data indices, LLC. Data as of 31 December 2024. Past performance does not predict future returns.
Investment Philosophy
Our philosophy is a prudent, active, high conviction, macroeconomic based approach and is underpinned by the below characteristics:
• Macro drivers ultimately determine asset price performance.
• ESG is an integral part of our investment analysis.
• Avoiding underperformers is as important as picking outperformers.
• Prudent position sizing will prevent performance impairment.
• Liquidity is of paramount importance.
The schematic below illustrates the above characteristics inherent in our approach.
Why emerging market debt?
In a world of diverging growth and shifting rate cycles, Emerging Market Debt (EMD) stands out as a resilient and rewarding opportunity. Despite persistent scepticism and a history of global crises; from the Asia crisis to COVID-19, EMD has consistently outperformed traditional fixed income assets like US High Yield and Treasuries over the past three decades.
As the global rate cycle peaks and developed markets face slowing growth, we believe that EMD offers attractive yields, improving fundamentals, and diversification benefits. The data tells a compelling story: even amid volatility, EMD has delivered strong, long-term returns, defying the myth of fragility.
We believe that EMD should be reconsidered, not as a risk, but as a resilient performer in a fixed income strategy.
Note: Total Return of J.P. Morgan EMBI Global Diversified Composite Index (JPEIDIVR Index), ICE BofA US Cash Pay High Yield Index and ICE BofA US Treasury Index, for a $100 original investment since 1993.
EM External Debt: JPEIDIVR Index, US High Yield: J0A0 Index, US Treasuries: G0Q0 Index.
Source: BofA Global Research, Bloomberg, J.P. Morgan EMBI Global Diversified Composite Index, ICE Data indices, LLC. Data as of 31 December 2024.
Past performance does not predict future returns.
Why emerging market debt?
In a world of diverging growth and shifting rate cycles, Emerging Market Debt (EMD) stands out as a resilient and rewarding opportunity. Despite persistent scepticism and a history of global crises; from the Asia crisis to COVID-19, EMD has consistently outperformed traditional fixed income assets like US High Yield and Treasuries over the past three decades.
As the global rate cycle peaks and developed markets face slowing growth, we believe that EMD offers attractive yields, improving fundamentals, and diversification benefits. The data tells a compelling story: even amid volatility, EMD has delivered strong, long-term returns, defying the myth of fragility.
We believe that EMD should be reconsidered, not as a risk, but as a resilient performer in a fixed income strategy.
Note: Total Return of J.P. Morgan EMBI Global Diversified Composite Index (JPEIDIVR Index), ICE BofA US Cash Pay High Yield Index and ICE BofA US Treasury Index, for a $100 original investment since 1993.
EM External Debt: JPEIDIVR Index, US High Yield: J0A0 Index, US Treasuries: G0Q0 Index.
Source: BofA Global Research, Bloomberg, J.P. Morgan EMBI Global Diversified Composite Index, ICE Data indices, LLC. Data as of 31 December 2024.
Past performance does not predict future returns.