Emerging Markets Debt, an Underinvested Story
Why Emerging Markets Debt?
→ Total debt in developed markets was 200% of GDP in 1990 and is close to 400% today. What has happened to overall EM debt levels since 1990? Debt has also increased… but only by around 50% of GDP.
→ Recent rally in EM Sovereign bonds since the ECB announced plans to buy bonds, with an increasing number of European institutions needing to improve income for actuarial reasons.
→ EM Yields are strong… the JP Morgan EMBI Global Diversified, an index of sovereign bonds, yields 5.8%; the high yield component of that index offers 6.9%.
→ While growth in Emerging Markets has slowed, it remains positive.