Muzinich's Hyland: The prospects for EM debt in 2015

Warren Hyland, lead portfolio manager of the Muzinich Emerging Market Short Duration fund, analyses the performance of emerging market debt and prospects for 2015.

Year-to-date emerging market debt returns remain one of the strongest-performing corporate credit classes, despite being out of favour at the start of the year. Substantial fund flows in the first two weeks of November demonstrated that EM corporates are now back at the forefront of investors' minds, with a more than doubling of cumulative year-to-date net inflows to $2.46bn. The asset class remains one of the fastest growing across the globe. The liquid emerging market corporate bond universe now exceeds $1trn and has grown at a compound growth rate of 22% per year since 1998. The...