5th June 2023
T. Rowe Price: Volatility Brings Opportunity in Fixed Income
The multi?trillion?dollar emerging market (EM) bond market covers a multitude of countries with distinct and changing geopolitical and economic profiles. To traverse this vast and diverse market as an investor, we believe that the starting point should be assessing a country’s debt sustainability profile. That’s because while debt is a necessary component for financing economic development, when it becomes unsustainable, it can be an accelerator for distress and a macroeconomic crisis. This underscores why it is so important to undertake a country?specific debt sustainability analysis—it’s the foundation from which we build upon when investing in emerging market debt (EMD).
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