26 Aug 2013

Sergio Trigo-Paz and Ernesto Bettoni

 

Emerging market debt has grown up in the past decade. Once viewed as an exotic investment, it is now becoming mainstream — and with good reason. According to BlackRock’s emerging market debt experts, this relatively new asset class offers the potential for higher income, long-term portfolio growth and enhanced diversification.

Highlights

  • Emerging market debt combines attractive yield and return opportunities with low historical correlation to traditional areas of the bond market.
  • Relatively strong economic growth and fundamental changes in emerging markets over the past decade have improved the quality and stability of emerging market debt.
  • With such a broad range of opportunities and risks, deep research, analysis and discipline are crucial to building the right portfolio.

An allocation to emerging market local debt is for investors who are:

  • seeking income and capital appreciation
  • searching for an alternative to traditional core bond strategies containing heavy interest rate risk
  • underweight emerging market hard currency debt
Emerging Markets Credit Ratings' Steady Rise

                                

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