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Authors:
Michael Henry

Fixed Income Portfolio Manager

Maura Neely, CFA

Fixed Income Investment Director

Publication date: May 2017

Emerging local debt: Ready for takeoff

Opportunities and risks | Appears in: Fixed income, Outcomes-focused fixed income investing, Emerging markets: Active opportunities span asset classes, Emerging markets debt (EMD), Emerging local debt (ELD), Income solutions, Return solutions

We believe emerging local debt has reached an important inflection point as fundamentals, valuations, and technicals have all improved. After several years of decelerating economic growth and challenging market conditions, we are starting to see a positive shift in both structural and cyclical fundamental trends across most emerging markets countries. In addition, inflows are returning to the asset class as market participants seek to reengage with this under-held market segment.