Fad or future: insiders on the outlook for EM corporates
Set to rival the US high yield market, or undermined by treasury rate rises? Citywire Global canvasses specialist bond managers on where their market is headed in 2013.
by Chris Sloley on Feb 04, 2013 at 10:09
Emerging market corporate debt is among the fastest growing fixed income sectors but how will this growth be sustained and what opportunities and challenges does this present?
The market is currently made up of around $1 trillion of paper – up from $500 billion six years ago – and on course to grow further.
Highlighting this speed of change, Lazard Asset Management’s Arif Joshi said the market is only two or three years off surpassing the US high yield market in terms of pure size.
Here Citywire Global has canvassed three emerging market corporate bond managers to find out what the impact of its rapid growth and relative infancy compared to other markets means for investors.
Commenting on the challenges facing this growing asset class are specialist emerging market corporate bond managers:
- Esther Chan, lead manager on the Aberdeen Global - Emerging Market Corporate Bond fund;
- Dorthe Freedsgaard Nielsen, co-manager on Swiss & Global's JB Emerging Markets Corporate Bond fund;
- Jack Deino of the Invesco Emerging Markets Corporate Bond fund.
Next - how the EM corporate experts intend to handle the heat
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