Attractive yields, resilient fundamentals, and a broad range of countries and return drivers provide opportunities for investors seeking diversification.
Expanding Opportunities for Yield and Resilience
Fundamental Backdrop
Robust macro fundamentals coupled with inflation which has moderated from recent highs, is supporting the widening emerging markets - developed markets growth differential. This, combined with healthy external balances, stable fiscal dynamics and easing global financial conditions make EM fixed-income assets attractive to global investors.
Diversification
EM fixed-income has demonstrated low correlations with developed markets, and offers differentiated macro, credit and currency exposures that can help reduce overall concentration risk. The asset class spans sovereign and corporate issuers across 80+ countries*, providing access to a broader set of return drivers and credit cycles.
Higher Yield Potential
Despite developed market yields at historically high levels, emerging markets fixed-income continues to offer a meaningful yield premium supported by structural growth differences and perceived risk premia. This remains evident across sovereign and corporate issuers in both hard and local currency markets.
The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk. There can be no assurance that any investment objectives will be achieved.
*Represented by the J.P. Morgan EMBI Global Diversified Index and the CEMBI Broad Diversified Index. Please note the number of countries in these indices can fluctuate over time.
Why AB for Emerging Markets Fixed-Income?
Our deep fundamental insights, combined with robust quantitative research, are further strengthened by powerful proprietary tools and advanced technology, enabling more informed and disciplined decision‑making. This seamless blend of art and science comes to life in our fixed-income sovereign bond investment process, helping us uncover compelling opportunities and manage risk effectively.
Featured Emerging Markets Fixed-Income Strategies
Our diversified range of emerging markets fixed-income solutions, spanning hard and local currency, sovereigns and corporates, offers investors access to the potential for strong returns from a combination of price appreciation and income.
Emerging Market Corporate Debt
Emerging Market Corporate Debt High Grade
Emerging Market Debt Blend
Emerging Market Debt Diversified
Emerging Market Debt Hard Currency
Emerging Market Debt High Grade
The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk. There can be no assurance that any investment objectives will be achieved.