The Effects of COVID-19 on Emerging Market Debt

By Abdelak Adjriou - March 2020

COVID-19 and Emerging Markets Debt

The coronavirus is impacting the global economy three different ways:

  1. Supply chain disruption
  2. Slowing demand
  3. Investor confidence.

What does this mean for investments in emerging markets debt? Portfolio Manager Abdelak Adjriou discusses headwinds (and potential tailwinds) for this asset class, as well as positioning when the global outbreak subsides.

4 minutes, 5 seconds

Text Transcript

Abdelak Adjriou
Vice President, Senior Portfolio Manager

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    EM Central Banks Enter Uncharted Policy Waters

    Previously, EM policymakers sought to protect their currencies when capital flows suddenly stopped. Now, they are trying to protect growth—at any cost.

    Breaching Benchmark Borders in Emerging Markets

    Finding value and managing risk in emerging markets debt often means seeking opportunities beyond the constraints of a broad market benchmark.

    The Effects of COVID-19 on Emerging Markets Debt

    Will the global outbreak threaten prospects for emerging markets debt? Portfolio Manager Abdelak Adjriou offers his views.

      FOR INSTITUTIONAL USE ONLY | NOT FOR PUBLIC USE

      International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks.

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.