Seeking Better Value in Emerging Market Debt

This podcast episode explores the value of investing in emerging markets for buyers of investment-grade bonds. The speaker suggests that investors looking for high-rated yield with longer duration may find a better alternative in the debt of high-rated countries in the emerging markets, which currently trades at a discount to corporate bonds and offers higher spreads, especially for longer-dated borrowings. The discussion also highlights the difference in credit spreads and risk premiums between corporate bonds and emerging market debt, as well as the factors driving higher risk premiums in the emerging market debt market.