Emerging Markets Debt Has Grown Up

William Blair 846 Follower s Follow 5 Share Save Play ( 6min ) Comments Summary EM debt has expanded into a $44 trillion, institutionally mature asset class. Local and frontier markets may offer select opportunities through reform and relative-value plays. With strong yields and improving stability, we believe EM debt can enhance diversification without adding volatility. EMs appears to be reaping the rewards of having done the hard work early. The EM debt opportunity is now driven more by idiosyncratic reform and relative value than by simple exposure to risk sentiment. Vladimir Zakharov/iStock via Getty Images Emerging markets (EM) debt has matured. What was once viewed as a volatile tactical trade is now a structurally stronger, institutionalized asset class. The asset base has expanded, policy discipline has improved, and reforms have strengthened the foundation beneath both sovereign This article was written by William Blair 846 Follower s Follow William Blair is committed to building enduring relationships with our clients and providing expertise and solutions to meet their evolving needs. We work closely with the most sophisticated investors globally across institutional and intermediary channels. We are 100% active-employee-owned with broad-based ownership. Our investment teams are solely focused on active management and employ disciplined, analytical research processes across a wide range of strategies. We are based in Chicago with resources in New York, London, Zurich, Sydney, Stockholm, and The Hague, and dedicated coverage for Canada.

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