Emerging market corporate bonds and tariffs: beyond the noise
How will tariffs affect EM corporate bonds? We turn to Mexico to show why the answer isn't as bad as some think.
Tightening environmental regulations allied to growing consumer demand have driven commitments of over US$130 trillion into net-zero projects [1], creating a once-in-a-generation investment opportunity.
All-in global investment grade credit yields of 5.4% are near 10-year highs [2], with firms that mitigate transition risks or offer sustainable products well-placed to deliver attractive returns.
Bond prices have dropped to levels not seen in nearly 10 years while forecast policy changes promise to drive further value for bondholders [3]
Unconstrained exposure across global investment grade, high-yield, emerging markets, municipal and green bonds for an all-in yield above 5.54%, with minimum average BBB- rating. [4]
We combine proprietary climate tools and research with our best investment ideas to target impactful returns, using our ESG expertise to enhance outcomes. We engaged issuers in 82 sustainability meetings in 2023.
[1, 3] Source: abrdn, 30 November 2023.
[2] Source: abrdn, 30 November 2023. A positive yield does not imply a positive return.
[4] Source: abrdn, 31 December 2024. A positive yield does not imply a positive return.