Insights

Fixed Income: China, EM Come Online

In our survey of over 350 institutional investors, responses confirmed that the trend of increasing investment in Chinese and emerging markets’ bonds remains in place. This paper looks at what investors are thinking when it comes to making investments in these assets.

27 October 2021

The appetite of investors for emerging market debt has increased as its higher yields and lower durations compare favourably with the low/negative yields and high duration of developed market bonds. While not without its risks in the current environment, EM debt is increasingly considered a strategic allocation within the modern fixed income portfolio. It is not a surprise to us that 42% of the global institutional investors who participated in our survey say that they expect to increase allocations to EM debt over the next three years.

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