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  • Given the evolution of the asset class and several attractive characteristics, we think emerging market debt should be considered a ‘core’ part of an insurer’s public fixed income strategy. Here are the reasons why:

    • Credit assets offer a growing insurance market quality investments, liquidity and diversification
    • Longer maturities are key to insurers as they seek to match their liabilities. Emerging market debt may offer high-quality duration
    • The asset class is complementary to developed market debt, but investors should be mindful of the illiquidity risk and issuer concentration

     

    Authors:

    Phil Yuhn, Portfolio Manager Emerging Market Debt, Man Group
    Jerry Song, Director, Global Insurance, Man Group

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