A short history of EM corporate debt

EMs

Andrei Gorodilov, portfolio manager of the Fidelity Funds Emerging Market Corporate Debt fund, highlights the key issues investors should be aware of when investing in this growing asset class.

The emerging market corporate bond market is an asset class that has truly come of age. A swelling pool of issuance has been more than met by demand from investors as yields have fallen and spreads have tightened across ratings. But, while emerging market corporate bonds are not nearly as well-known as their sovereign counterparts, this is by no means a new asset class. Many EM companies already have a long history of bond issuance – in some cases stretching over 20 years. The market has seen ongoing improvements in corporate fundamentals and liquidity – although at times this has bee...