Why emerging market corporate debt should be in every bond portfolio

Sustainably higher rates of return in combination with, in historic terms, lower default risks – this is the profile that corporate bonds from emerging economies offer in contrast to the bonds of European and US firms. Corporate bonds denominated in US dollars should therefore be a strategic component of any bond portfolio. Within the increasingly mature and growing bond markets of emerging markets, the corporate bond sector offers investors additional diversification options and in many cases great investment opportunities with a higher earnings potential.

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