Corporate bonds that span the BBB to BB rated space are referred to as "crossover bonds." By focusing on this space, investors can maintain a higher quality rating while adding relatively higher yield for the level of credit risk.
The emerging market debt asset class has experienced strong returns in 2016 driven by substantial inflows stemming from an increased risk appetite fueled by low developed market yields. Given the rally has been driven more by a search for yield than an improving story in EM countries, the question becomes, how long can this rally continue?
- Overview of recent market rally and performance drivers
- Shifts in the macro environment for emerging market countries
- Areas within EMD that present opportunities as well as risks
- The critical importance of portfolio construction and how it is executed by our team
Emerging market countries can issue hard currency debt denominated in global currencies such as the US dollar, but many EM countries can also issue debt denominated in their local currency. To learn how to best evaluate a local EM currency, watch this informative video.
Join us for HSBC Global Asset Management's webinar on Emerging Markets Debt (EMD), hosted by Brian Dunnett, Senior Global Emerging Markets Debt Product Specialist, with Nishant Upadhyay, Head of Global Emerging Markets Debt and Binqi Liu, EMD Economist.
We have begun to observe a stabilization in economic fundamentals in a number of EM countries, global monetary policy support that has mitigated external threats, and finally, attractive relative valuations in EM vs. developed markets.