Insights

Historically, investing in emerging markets (EM) has implied accepting higher volatility and risks, including political instability and currency devaluations. Yet, over the past decade, the structure and drivers of the asset class have changed.Today, an EM debt (EMD) investment can be made based on the perspective for sustained economic growth, ongoing governance improvements, and a more mature structure for debt issuance, characterised by increased issuance in local debt markets versus hard currency (external) debt markets.In this article, Ostrum AM’s EMD experts Brigitte Le Bris, Sebastien Thenard and Clothilde Malaussene share what they see as the key risks and opportunities for EM investors.

Every month, find out all about the sustainable market bonds news in our newsletter "MySustainableCorner".

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets.

In 2023, money market funds experienced a significant increase, benefiting from a backdrop of rising interest rates and inflation. Investors are reassessing their approach to liquidity, with a 21% increase in assets under management, followed by an 11% rise in 2024. As the prospect of rate cuts looms, the sustainability of these attractive yields remains uncertain.

The world is holding its breath ahead of the US elections on November 5. The outcome will be positive or negative for emerging market currencies, depending on the political choices implemented.

Every month, find out all about the sustainable market bonds news in our newsletter "MySustainableCorner".

Fixed income requires:     • a clear understanding of credit risk     • a strong monitoring of duration risk in your portfolio     • and a robust view on the evolution of these two factorsWe have the scale and are well equipped to meet these challenges, and properly serve our clients’ fixed income needs

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets.