3 rules of thumb for emerging market debt

The often-quoted US$17 trillion worth of negative-yielding bonds are from developed economies such as Japan, Germany and France. In stark contrast, government bonds from emerging markets such as Brazil, Russia, India, Indonesia and South Africa are all paying between 5% and 10% right across their yield curves.

But what are some of the key considerations before investing in these markets for the first time? When we caught up recently, we asked James Blair, Head of Fixed Income Asia Pacific, Capital Group to nominate some ‘rules of thumb’ for investing in emerging market debt. In this short video, he gives new investors a succinct framework to consider for thinking about this high-yield opportunity