Fixed income
Rethinking emerging markets hard currency
Rethinking emerging markets hard currency
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Conventional thinking for emerging markets hard currency exposure is to manage sovereign bonds and corporate bonds in separate portfolios.
This paper challenges that idea. We believe investors should rethink current methods. We make the case that a hard currency portfolio with the ability to invest in both sovereigns and corporates improves the ability to:
- best express country-level views
- manage active and downside risk
- more efficiently achieve risk-return objectives
