Once considered a risky niche opportunity, the emerging-markets debt asset class has grown in size and improved in quality. Because of their greater economic diversification, with more focus on domestic services and consumer spending versus commodity exports, emerging markets have become one of the strongest components of the global economy.
What are the potential benefits?
- Offer a mix of sovereign, corporate and structured debt
- Securities can be denominated in either foreign or U.S. currencies, delivering further diversification and return potential.
- Better yield potential than developed markets where lower growth forecasts continue to keep interest rates lower
What does Federated offer in this category?