By Alberto J. Boquin, research analyst, Brandywine Global Investment Management
The COVID pandemic highlights the quality differentials within the EM debt universe. This year’s COVID shock accelerated a secular decline in interest rates around the world. Emerging market (EM) rates are no exception. The yield on the JP Morgan Emerging Market Local Currency Index (GBI-EM) declined to a series low of 4.6% compared to a 6.3% average in the prior decade. However, looking at the index can be misleading...