Emerging Better than Before

Debt opportunities beckon as emerging markets rebound.

MARKET POTENTIAL EXPERTISE IN ACTION ADDED INSIGHTS
MARKET POTENTIAL EXPERTISE IN ACTION ADDED INSIGHTS

CONSTRUCTIVE CONDITIONS FOR EM DEBT 

Emerging market (EM) debt is attracting renewed interest as macro conditions call for greater diversification and a weaker U.S. dollar aids the outlook. Yields on EM debt stand out versus other sectors at a time when investors show an appetite for income-driven returns and rate cut expectations add upside potential. Underpinning the opportunity, EM economies boast above-trend growth and broadly improved fundamentals.

FIVE FACETS OF IMPROVED EM FUNDMENTALS

Several factors have driven fundamental improvement within EM at a time when developed market fundamentals are deteriorating. EMs have benefitted from:

Equipped For Outperformance

EXPERIENCE AND STABILITY

PGIM’s EM Debt team consists of 35 portfolio managers, economists, and sovereign and corporate credit analysts. Senior members of the team started PGIM’s EMD efforts in 1995.

INTENSIVE RESEARCH

Category specialists based in the U.S., Europe and Asia conduct fundamental research and leverage firmwide insights to manage $61 billion in EM debt.

EXPANSIVE UNIVERSE

The team formally rates a universe of over 100 EM countries, 250 companies and 25 sovereigns/quasi-sovereigns, using a relative value framework to guide optimal trading decisions.

 

*Source of data: March 2025

Equipped to achieve excellence

PGIM Fixed Income team was named  “2025 Best Fixed Income Manager” by AsianInvestor in the Asset Management Awards 2025.

PGIM Fixed Income team was named “2025 Best Fixed Income Manager” by AsianInvestor in the Asset Management Awards 2025.
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PGIM Fixed Income team was named “2025 Best Fixed Income Manager” by AsianInvestor in the Asset Management Awards 2025.

*The recognition was based on a comprehensive evaluation process considering both quantitative performance metrics and qualitative assessment by AsianInvestor’s judging panel. Performance was measured against widely tracked benchmarks with particular attention to risk-adjusted returns during the 2024 calendar year, specifically on the firm’s ability to navigate market volatility and consistent performance across multiple fixed income strategies.

Sources of data (unless otherwise noted) are as of 30/09/2025.
 

References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.

 

The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.

 

Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.


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