Expert insight

Why investors should consider emerging markets bonds in 2024

February 22, 2024

Daniel Shaykevich

Principal, Senior Portfolio Manager, Manager Emerging Markets

This simple scatterplot chart shows credit spreads over sovereign bonds and duration for emerging markets bonds, U.S. high-yield bonds, and U.S. investment-grade bonds. Emerging markets bonds have higher spreads than U.S. investment-grade bonds and a longer duration U.S. high-yield bonds.
This line chart shows the ratio of emerging markets credit spreads to U.S. corporate spreads for both investment grade and high yield during the past two years. The emerging markets spreads have been gradually widening, which may make them more attractive.
This bar chart shows that, since 2017, the percentage of emerging markets bonds issuance in January has generally grown as a proportion of total-year issuance. In 2024, it is projected to be 47% of the total, which means supply growth should be limited for the rest of the year.
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