When PKA split its high yield portfolio into regional exposures, it had to decide whether its US and Europe-based managers would retain the emerging market corporate debt exposure
The outlook for emerging market corporate debt remains positive but not all Nordic investors are convinced
Smaller enterprises are facing a funding shortage as banks deleverage but pension funds are hesitant about stepping in
Nordic investors’ interest in high yield has cooled down as they are turning to euro-zone equities and corporate bonds
SPP is one of several Swedish institutional investors that still lack exposure to emerging market debt.
Nordea Liv & Pension in Denmark has just made its first allocation to emerging market corporate debt and continues to increase its exposure to local currency emerging market debt sovereigns.
While the crisis in the eurozone is likely to continue to hit emerging market assets, companies domiciled in emerging economies can boast increasingly strong fundamentals and continued rating upgrades
As inflows into local currency emerging market debt continue, fund managers believe investors should further scrutinise manager performance
The same environmental, social and governance risks for shareholders are relevant considerations for debtholders
Keva, the €29.4bn Finnish local government pension institution, has abandoned its risk-taking strategy for distressed eurozone government bonds and repatriated its assets to safer holdings.