In today's world, a dedicated allocation to EM Debt is even more important
Episode Description = The Russian invasion of Ukraine is rattling global financial markets. Part of Russia’s capital structure has become uninvestable and Eastern European assets have had significant sell offs despite their balance sheet fundamentals being significantly better. The outlook is positive for many emerging market economies, as growth continues to rebound. Indeed, in 2022, emerging markets are poised to outperform the developed world, as Western policymakers tighten monetary policy and withdraw fiscal stimulus. From an investment perspective, emerging market debt is under-owned, and portfolios should be reallocated to those parts of the world that are beneficiaries of this type of macroeconomic backdrop. - Arif Joshi, Lazard Asset Management on Portfolio Construction Forum