IDEAS home Printed from https://ideas.repec.org/a/pal/assmgt/v26y2025i7d10.1057_s41260-025-00427-x.html
   My bibliography  Save this article

Exploring emerging markets debt: Bond voyage?

Author

Listed:
  • João Gabriel Giesta de Mello Fernandes

    (Robeco Institutional Asset Management)

  • Laurens Swinkels

    (Robeco Institutional Asset Management
    Erasmus University Rotterdam)

Abstract

We examine the characteristics, returns, and risks of local-currency, hard-currency, inflation-linked, and corporate emerging markets bonds over the period 2003–2025. Local-currency markets have more diversification potential with conventional asset classes, because of the currency risk involved. Hard-currency emerging debt markets have had higher return correlations with conventional credit asset classes but provide fundamental issuer diversification. The added value of emerging debt in multi-asset portfolios has been substantially larger in the first decade of our sample than in the most recent decade. This is at least partially driven by more attractive valuation levels today than a decade ago. We also discuss macroeconomic risk factors such as tariffs and commodity prices.

Suggested Citation

  • João Gabriel Giesta de Mello Fernandes & Laurens Swinkels, 2025. "Exploring emerging markets debt: Bond voyage?," Journal of Asset Management, Palgrave Macmillan, vol. 26(7), pages 847-862, December.
    • Handle: RePEc:pal:assmgt:v:26:y:2025:i:7:d:10.1057_s41260-025-00427-x
    DOI: 10.1057/s41260-025-00427-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41260-025-00427-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41260-025-00427-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:assmgt:v:26:y:2025:i:7:d:10.1057_s41260-025-00427-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.