Staying Selective in Emerging Markets Debt Investing

Text on screen: Pramol Dhawan, Head of Emerging Markets Portfolio Management

Recorded 16 August 2022

When we look at the data, just by allocating to the higher yield component would return investors materially worse information ratios as well as higher correlations to equities and larger drawdowns.

In fact, it’s the higher quality segment across the emerging markets which has proven to be more resilient in downturns and actually offers the best risk adjusted returns. In order to be able to distinguish between risk and uncertainty, PIMCO has developed what we call a black hole risk framework. This seeks to identify those most troubled issuers and help us to avoid credit impairments and defaults amongst those names which are often popularly held.

Text on screen: For more insights and information, visit pimco.com

Text on screen: PIMCO

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