Why This Event?
Emerging Market (EM) economies have undergone many transformations over the past two decades, as their share of world gross domestic product (GDP) has doubled from approximately 20% to 40% from 2001 to 2017.
In fact, Emerging-market bond funds have returned 6.41% over the past 12 months, compared to a loss of about 0.57% on long-term U.S. government bonds. Yet the EM fixed-income universe remains under-represented: although emerging economies account for 60% of global GDP, EM debt makes up just 11% of global bond markets.
Why? Transparency, liquidity, and currency risks in these markets remain major market challenges. But that is changing rapidly…in an age of tech disruption and innovation at every turn, falling behind can be more detrimental than ever – and will be even harder to catch-up.