Macro Considerations: Understanding Nuances in Emerging Market Debt

Russia’s invasion of Ukraine has had a significant negative impact on global post-pandemic recovery. Since the war began, emerging markets debt has found itself under pressure, suffering one of the worst drawdowns in recent history and underperforming most other fixed income markets. In the first quarter of 2022, the JP Morgan EMBI Broad diversified Index, representing EM sovereign bonds issued in USD, fell by just over 10%, both as a result of the direct impact of the crisis and of the effect of higher Treasury yields on duration. However, the impact of the invasion has varied enormously across asset classes and markets. For professional investors looking to add risk in emerging markets debt, it’s never been more important to understand how the impact of global macroeconomic trends varies for different segments of the asset class and the specific economic profiles of the different countries. In Episode 2 of M&G’s Original Series, ‘Uncovering Emerging Market Debt,’ we’re exploring the macro-economic risks for emerging markets debt as an asset class and discussing how the impact of current geopolitical uncertainty varies by region and asset class. Join us in the second episode of the series, as we discuss: - Key drivers and considerations for investing in different EMD assets - Macro trends impacting EMD: How global politics and current affairs affect returns - Differences and similarities between geographic regions: Mainstream vs Frontier. Latam, Asia, - - Developing Europe - And more…