Our services in the selected country:
  • No services available for your region.
Select Country:
Remember my selection
Your browser is out of date. It has known security flaws and may not display all features of this and other websites

August 2017

EM Corporate Debt – Earning a Place at the Table


Note: Separate multiple email address with a comma or semicolon.

Send me a copy


Note: Separate multiple email address with a comma or semicolon.

Your Name:

Your Email Address:

Send me a copy

Emerging Market (EM) corporates are as varied as the language, climate and cuisines of their home countries. We believe this diverse asset class can serve as an extension to existing corporate credit allocations or as a compliment to EM sovereign exposure. EM corporate debt provides investors with a high quality source of yield, and over the medium- to long-term, we believe companies in this investment universe stand to benefit from a shift in economic potential from developed to emerging markets.

EM economic growth has been accompanied by growth in EM asset classes. Deeper capital markets and rising investor demand has helped the EM corporate debt sector grow 300% in the last decade to become a core component of the global fixed income opportunity set.

EXHIBIT 1: EM corporate debt represents over 16% of the global corporate debt market


Source: JP Morgan, Bloomberg, Bond Radar. As of February 2017. EM Corporate debt data reflects corporate and quasi-sovereign external debt. 

EM corporate debt can provide investors with a high quality source of yield versus other fixed income sectors, and also has lower duration exposure than EM sovereign debt. Over 60% of the investment universe is investment grade rated, which may appear surprising to those who assume investing in EM corporate debt requires compromise on credit quality.

EXHIBIT 2: High quality source of yield with relatively low duration exposure


Source: JP Morgan, Barclays, Citi Group, Credit Suisse, GSAM. Duration as of June 30, 2017. Past performance does not guarantee future results, which may vary.


Finding Opportunities in Emerging Markets

The Emerging Market landscape has changed significantly over the last few decades. This evolution has created a broader set of opportunities for investors.

March 09, 2017 | GSAM Connect
Four Things to Know about Emerging Market Corporate Debt

We believe investors should look beyond the headlines and toward the long term when it comes to investing in emerging markets.


For More Information
Shareholder Services Team
+971 4376 34444