Since 2008, the debt of rich countries has had low or even negative yields and their economic growth has been weak. In contrast, emerging market debt yields have remained positive or even high. Moreover, these countries appear to be less risky, with higher growth and positive foreign exchange reserves. This article places the context of emerging market debt in the macroeconomic context and tries to understand what the consequences of the Covid crisis will be, as the IMF expects emerging market countries to grow more than developed countries.
1 iShares JP Morgan USD Emerging Markets Bond ETF, https://www.ishares.com/us/products/239572/ishares-jp-morgan-usd-emerging-markets-bond-etf.