Investment Grade Emerging Market Debt for General Account Clients

March 03, 2025

At PPM, we see an elegant solution to General Account (GA) portfolios seeking capital-efficient yield enhancement without giving up liquidity or transparency – Investment Grade (IG) rated Emerging Market (EM) public debt. This segment of the EM universe allows an opportunity for a significant pick-up over comparable US corporate credit allocations with all-in yield and spread levels similar to those attainable in the IG Private Credit space. Counterintuitively, this income pick-up is generated with a risk, volatility, impairment and capital charge profile similar to, if not better than, US corporate credit opportunities.

Unless otherwise stated, the information presented has been prepared from market observations and other sources believed in good faith to be reliable. Information and opinions expressed by PPM are current as of the date indicated and are subject to change without notice. Forward-looking statements are subject to uncertainties that could cause actual developments and results to differ materially from the expectations expressed.

Past performance is no guarantee of future results. Investments involve varying degrees of risk and may lose value.

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