EM Insider – Ep.16 Why the appetite for EM corporates is cooling
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Has the time finally come for emerging markets’ sovereign debt to outshine its corporate equivalent? Raphael Kassin thinks so, but he is unsure many market participants have properly picked up on such a pivotal moment.
Kassin, who is now head of emerging markets hard currency debt at Itaú Asset Management, said November 5 – or Fireworks Night in the UK - marked a crossover point for the asset class, with government-issued debt outperforming the corporate market for the first time in 2021.
While this doesn’t make the EMD complex any less challenging, Kassin said it opens up the potential for developing world debt to deliver a return of flat to 5% for the year as a whole.
[Chris Sloley is the editor of Citywire Selector]
Kassin, who is now head of emerging markets hard currency debt at Itaú Asset Management, said November 5 – or Fireworks Night in the UK - marked a crossover point for the asset class, with government-issued debt outperforming the corporate market for the first time in 2021.
While this doesn’t make the EMD complex any less challenging, Kassin said it opens up the potential for developing world debt to deliver a return of flat to 5% for the year as a whole.
[Chris Sloley is the editor of Citywire Selector]
