Emerging market debt: Darkest before dawn

Sustainability. We mean it.

Insight

22 November 2022 |

Active ESG

We expect the US dollar to peak in Q4 2022 and if and when this happens, it will mark a significant downgrade in the strength of headwinds affecting EMD.

EMD Report Q4 2022

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Within the fixed income spectrum, EMD offers particularly compelling value on account of already having priced in much of the risk that other asset classes must negotiate in the year to come.
Following the bruising sell-off in the first six months of the year, 20% of the EMD universe trades at over 1000bps in spread terms, and 26% of the asset class trades at distressed cash prices below 70bps.