To the Brink and Back : Emerging Market Debt in 2020

Emerging market debt (EMD) has rallied along with other risk assets, recovering a large part of the losses incurred earlier in the year. In “COVID-19 and what it means for EMD investors” published in April, we argued that the sell-off in March induced by the dual blow of the COVID-19 outbreak and a collapse in oil prices presented an attractive entry point into the asset class. In this update, we take stock of what has happened since then and consider whether EMD still represents an attractive investment.