Emerging market debt delivers despite outdated doubts

Emerging market debt has grown hugely over the past few decades, but outdated views of the asset class remain. It has been viewed as a niche asset class that is mainly suitable for investors with a high tolerance for risk. However, emerging market debt is now prominent in many countries, becoming a core part of global fixed income portfolios. Past crises have also deterred investors, but over the past 30 years, the asset class has outperformed US high-yield bonds and Treasuries, becoming more diversified and stronger due to foreign exchange reserves. Finally, there is the perception that emerging...