Taking an unconstrained approach to EM debt

PARTNER INSIGHT: Matt Murphy, Institutional Portfolio Manager at Eaton Vance, says the primary source of risk in emerging-market debt is benchmark construction

During the 1990s, the appetite for emerging market (EM) debt grew not only in volume, but also in the types of instruments traded, the number of trading houses involved, and the size of the market in relation to others worldwide. This distinct asset class continues to be a favoured area of fixed income with its high yields and value - it is still relatively cheap versus other global options. In addition to this, the emerging markets and developing economies have become increasingly important in the global economy. They now account for more than 75% of global growth in output and consumpt...