Avoiding defaults in Emerging Markets is crucial to investing in this risky area. Equally, the ability to spot improving credit stories is always part of the agenda.
Managing credit, default, interest rate and currency risk, balanced against investment return potential is key to any well diversified portfolio.
Risk management
Political analysis
Political stability is key to investing, as are reform-minded governments. The ability to assess sovereign nations’ political capacities and potential pitfalls is therefore paramount.
Foreign exchange
Currency movements can be substantial when investing in local markets. Potential interest rate returns can quickly disappear in an inflationary environment.