March 19, 2018
Emerging Markets Corporate High Yield - A Market That Has Come of Age?
Emerging Markets High Yield Corporate Debt is at the point where the US high yield market was 20 years ago – on the brink of widespread investor acceptance as a serious asset class. Once regarded as illiquid and exotic, the asset class is fast becoming a “must-have” component of any diversified investment portfolio, offering attractive value at acceptable levels of risk.
March 01, 2018
Emerging Markets Debt 2018 Outlook - Strong fundamentals should continue to drive EM High Yield
We remain constructive on EM Corporate High Yield (HY) due to stable fundamentals, relatively attractive yields, low default rates and potential for further spread tightening.
Nevertheless, we realise that the market may be vulnerable to increased official interest rates and the unwinding of QE. However, our base case scenario is that these factors are well-known and will continue to be implemented steadily and predictably to minimise market disruption.
We continue to be highly selective and concentrate on defensive and cash-generative sectors, such as Telecommunications.