Emerging market (EM) corporate credit grew out of the sovereign bond market over a decade ago and has since grown significantly to reflect a greater diversity of countries, sectors and issuers. Outstanding volumes of hard currency EM corporate debt now surpass those issued by EM sovereigns. Additionally, the EM corporate bond market has evolved into an asset class that is more similar to that of developed market corporate bonds.
Steve Drew, Head of Emerging Market Credit at Henderson, explains how the EM corporate bond asset class has evolved over the years. Discussing past trends and sharing his views on future trends, Steve lays down the arguments for a strategic allocation to the asset class.