Emerging Market Debt Perspectives: A Specialized Q&A for Insurance Investors

March 2019

To say the past ten years have been uniquely challenging for insurance investors would be an understatement. As developed market interest rates fell and regulatory scrutiny increased, many investors turned to emerging market debt (EMD) to reach for the yield their portfolios required. Despite this increased willingness to invest in the asset class, we frequently field questions from clients and prospects in the insurance space about the inherent risks of EMD, especially when compared to developed markets. In this paper we address many of these commonly asked questions, including:

• How would you address concerns about the contagion effects of EM?
• How have EM credit fundamentals performed relative to developed markets over the years?
• Given the challenging market backdrop today, how would we position the EMD portfolio?

For the full report, please download the file:

pdf-icon (PDF | 3.54 MB)