Weekly View from the Desk
PGIM Fixed Income shares their weekly views and outlook for fixed income markets.
Emerging Better than Before
Debt opportunities beckon as emerging markets rebound.
POISED TO DELIVER ON LONG-TERM PROMISE
While conditions in emerging markets (EM) suffered in a post-pandemic environment marked by inflation, U.S. dollar strength and geopolitical tension, EM debt warrants renewed allocation consideration amid current monetary policy trends. Rising fiscal discipline and growth potential versus developed markets are among the key factors underpinning an attractive long-term opportunity.
Five Facets of the EM Debt Opportunity
Equipped For Outperformance
EXPERIENCE AND STABILITY
With 25 years of investment experience on average, the PGIM Fixed Income EM team consists of 33 portfolio managers, economists, and sovereign and corporate credit analysts.
INTENSIVE RESEARCH
Category specialists based in the U.S., Europe and Asia conduct fundamental research and leverage firmwide insights to manage $55 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.
Related Insights
Emerging Market Debt: Q1 2025 Fixed Income Sector Outlook
Cathy Hepworth, CFA, Head of Emerging Markets Debt, explores the emerging market debt outlook for Q1 2025.
The Next Chapter in EMD
In this latest whitepaper, PGIM Fixed Income takes a sequential approach to providing a perspective on achieving optimal EMD exposure.
Five Over Five – The Structural Shifts Taking Place in EM
Following years of under performance, we explore five structural factors that should support the emerging markets over the next five years and possibly beyond.
Sources of data (unless otherwise noted) are as of 31 December 2024.
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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