However, since the advent of the Brady Plan in the 1980s, which saw loans to mostly Latin American countries that had defaulted on their debt converted into a variety of bonds, issuance has increased dramatically.
But what type of investor should be considering Emerging Market Debt funds? What drives the performance of these vehicles?
FTAdviser’s Guide to Emerging Market Debt funds tackles the different types of emerging market debt, the pros and cons of such vehicles and how long investors should hold on to such schemes for.
Answers supplied by Rob Drijkoningen, head of global emerging markets for ING Investment Management, and Brett Diment, head of emerging markets on the fixed income team at Aberdeen Asset Management.