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        Emerging Market Debt: Enhancing a Global Bond Portfolio


        15 March 2022
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        Over the last ten years, the emerging market debt (EMD) market has grown significantly. It now accounts for over 25% of the global bond market and trading liquidity has improved considerably.* We think this makes it too big for global bond investors to ignore. In the current low yield environment, EMD provides an attractive yield pick-up relative to investment grade bonds, while its lower correlation and higher growth factor exposure compared to global aggregate bonds offers diversification benefits.

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        This information is for informational  purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.

         

        Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. 

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