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Superior returns and lower risk in EM IG Corporate bonds
The Emerging View
05 July 2016
Using the longest available benchmark indices, we found that EM IG corporates offer potentially superior
returns and lower risk than US IG corporates across time periods, maturity and ratings buckets. This implies
that investors should consider reducing exposure to US IG corporate bonds in favour of their EM counterparts.
The existence of superior alternatives to developed market IG corporate bonds is particularly important at
a time when an increasing amount of the sovereign and corporate bond universe in developed economies
pays negative yields.