John Peta is Portfolio Manager, Co-head of Emerging Market Debt and Local Currency Strategy Leader. Zara Kazaryan is Fund Manager of Emerging Markets Debt and Corporate Strategy Leader. Both are members of Threadneedle’s Emerging Markets Fixed Income Team.
"The acceleration in rating upgrades for emerging markets corresponds with a vast improvement in the macro backdrop and net creditor status for emerging market countries in aggregate. Government debt to GDP for emerging market countries has declined to 34% of GDP 94.4% of GDP in 1993."
In this podcast they elaborate on the upside in emerging market debt and how it could be captured ...
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Q1 - Could you identify macroeconomic drivers that currently favour investing in emerging markets?
Q2 - Within the emerging markets which asset classes do you believe will perform positively and why should investor be considering them?
Q3 - How do you manage the underlying emerging market currency exposure and what is your longer term outlook on emerging market currencies?
Q4 - Are emerging market corporates trading at attractive levels? Why and where have you have identified opportunities?
Q5 - How would you rate an investment in emerging market corporates vs., emerging market high yield debt?
Q6 - How do you factor-in inflation? Do you have a yield and duration target?
Q7 - The Emerging Market Corporate Bond Index has a fairly substantial allocation to financials. How does this impact the way you allocate to emerging market corporate financials? Could you elaborate on the shadow banking issue in the context of the latter?