In this paper, we look at the evolution and characteristics of the Emerging Market (EM) fixed income asset class, since the 1980s, drawing on FTSE Russell data. We find EM fixed income is now a substantial and investible asset class and very different from the asset class that suffered major dislocation in 1997-98, with little contagion in recent years. Empirical evidence, including the Great Lockdown, does not support the view that EM fixed income is a pure risk-on asset. The variable correlations of returns with other assets offer portfolio diversification benefits. This evidence helps debunk some of the frequent misperceptions associated with EM fixed income. READ MORE
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