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Who We Are

Emerging Markets Debt Team

Why Loomis Sayles for Emerging Markets Debt?

A Dedicated Approach with a Global Perspective

With a 15+ year Emerging Markets Debt (EMD) track record, our tenured portfolio managers have experience investing through multiple cycles and evolving market regimes. 

Idea generation is supported by dedicated EM sovereign and corporate analysts. We embrace a global view with analysts located in Boston, London, and Singapore.

Distinct perspectives and a collaborative approach are core to the investment process. 



Fundamentally Focused & Quantitatively Driven

As value investors, we employ a research oriented, bottom up investment philosophy. Our aim is to deliver the long-term premium potential offered by emerging markets. 

Complex decision criteria across multiple vectorsregion, country, and sector require a bespoke valuation and portfolio construction tool. 

The quantitative toolkit, powered by proprietary, fundamental research, helps to drive the relative value and valuation process. 

Elevating ESG 

We see considerable opportunities for investments which align with ESG objectives, especially as it relates to the climate transition. 

The incorporation of ESG factors is a natural extension of our research driven investment process. 

The team's deep ESG capabilities helps to empower our development of green and responsible investment solutions for clients.

Our Philosophy

Historically, generating alpha in emerging markets could be accomplished through a country rotation approach. As emerging markets have evolved, alpha generation has become more complex, requiring investors to have a deep understanding of the issuer and sector-specific opportunities that are as diverse as the countries in which they exist. We primarily focus on issuer selection as the key to unlocking alpha in emerging markets.

At a Glance

  • Understanding the risk and return objectives of our clients allows us to deliver bespoke portfolios comprised of EM sovereign, corporate and local currency investments across the credit ratings spectrum.
  • We have experience in helping clients achieve their distinct ESG goals. We offer Article 8-aligned products as well as custom mandates focused on carbon reduction and investments in green, sustainable and sustainable-linked bonds.
  • The team has expertise in implementing distinct portfolio constraints including quality, duration and yield. For book-yield oriented clients, we partner with our in-house Insurance team to deliver custom solutions. 
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Team Insights

Below are the recent market outlook and insights published by the members of the team.

 

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Trading Floor Notes: Emerging Market Debt and Liquidity

Questions from clients and prospects reveal that misconceptions persist about the fluidity and scope of trading in EMD. Read this hands-on perspective regarding EMD liquidity for insights.

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Rethinking the EM Corporate Bond Asset Class: Insights for Insurers

Looking into 2024, we believe the market’s expectation of a global easing in liquidity could be an incremental tailwind to EM debt’s 2023 resilience—over and above the persistent spread premium we see in EM corporate debt.

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ELISABETH COLLERAN, CFA, PORTFOLIO MANAGER

Why Short Duration EM Corporates Now?

The outlook for interest rates may be lower, but short-duration emerging market corporates can still add value to a portfolio in our view. Watch as EM Debt Portfolio Manager Elisabeth Colleran explains why we believe this strategy makes sense in this environment. 

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EM Debt Outlook: Growth Drivers Persist

EM credits could benefit from the tamer inflation outlook and persistent growth drivers in a variety of industries. 

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ELISABETH COLLERAN, CFA, PORTFOLIO MANAGER

EM Debt Flips the Script

EM has shown it's more than just an export or China story, in our view. We think this trend can continue in 2024. 

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EM Corporates & ESG: A Surprisingly Strong Opportunity Set

Senior Investment Analyst Ashley Fritz addresses three major misconceptions around ESG investing in the EM corporate space.

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Broad Resilience Among EM Economies Can Contribute to a Constructive Outlook

Investment Strategist Jackie Lafferty currently sees potential opportunity in emerging market debt thanks in part to a resilient growth backdrop.

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EM Corporates with Elisabeth Colleran of Loomis Sayles

Elisabeth Colleran joined Stewart Foley from the InsuranceAUM.com podcast to discuss EMD and EM corporates.

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Is There Really an Emerging Market Debt “Playbook” Anymore?

Emerging market debt can be dogged by misperceptions. But EMD has shown relative resilience in a tough environment, and EMD portfolios can be customized to meet a range of distinct requirements for insurers. 

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Considerations for Insurers: Weighing an EM Corporate Debt Allocation

Are insurers missing an opportunity when it comes to their limited allocation to emerging market corporate debt? We think so.

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EM Debt Outlook: China Takes Center Stage

While the developed market-led slowdown will likely weigh on global demand, we see China’s reopening providing a strong tailwind to emerging markets, especially within the Asia region. 

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The EM Inflation Story: A Surprisingly Effective Response

EM central banks’ response to inflation was swift and strong, and appears to have helped these countries stay ahead of the Fed.

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The Ripple Effects from China’s Reopening

China’s reopening has the potential to be a rising tide that lifts all boats.

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Don't Sleep on Russia-Ukraine War Risk

The Russia-Ukraine war, China, and emerging market supply are risks that Elisabeth Colleran thinks may be underappreciated by the markets.

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Surprises from the First Half of 2022: Positive Trends in EM Despite Headwinds

To date, 2022 has been rife with credit headwinds—higher US Treasury bond yields, persistent inflation, the Russia-Ukraine war and COVID-19-related disruptions to China’s efforts to stimulate growth. 

Meet the Team

Collegial Culture. Methodical Approach.

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Elisabeth Colleran, CFA

Portfolio Manager

EddySternberg

Eddy Sternberg

Portfolio Manager

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Jackie Lafferty

Investment Strategist

AshleyFritz

Ashley Fritz, CFA

Senior Investment Analyst

KatyPalmer-2

Katy Palmer

Investment Director

BernardoAumond

Bernardo Aumond, PhD

Associate Director of the Fixed Income Quantitative Research Risk Analysis Group

Our Strategies

Emerging Markets Corporate Debt

Strategy Inception  5/10/2006
 

Highlights

The Emerging Markets Corporate Debt strategy seeks to outperform the JP Morgan Corporate Emerging Markets Bond Index (CEMBI) Broad Diversified

  • Primary Benchmark: JP Morgan Corporate Emerging Markets Bond Index (CEMBI) Broad Diversified

Emerging Markets Corporate Debt - IG Plus

Strategy Inception  5/22/2015
 

Highlights

The Emerging Markets Corporate Debt - Investment Grade Plus strategy seeks to generate attractive risk adjusted returns by combining macro-driven country analysis, with bottom-up security selection to identify potential market inefficiencies and alpha opportunities

  • Primary Benchmark: JP Morgan CEMBI Broad Diversified Investment Grade Index

Emerging Markets Short Duration Credit

Strategy Inception 3/31/2014
 

Highlights

The Emerging Markets Short Duration Credit strategy seeks to provide investment return through income


  • Primary Benchmark: ICE BofA ML 3 Month US Treasury Bill Index

Asia Bond Plus Unhedged in
USD

Strategy Inception  12/1/2018
 

Highlights

The Asia Bond Plus Unhedged in USD strategy seeks to outperform the JP Morgan Asia Credit Index (JACI) Non-Investment Grade Unhedged in USD

 

  • Primary Benchmark: JP Morgan Asia Credit Index (JACI) Non-Investment Grade Unhedged in USD
Questions for the team?

Let's Connect.

Katy Palmer

Investment Director

 

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Disclosure

This marketing communication is provided for informational purposes only and should not be construed as investment advice. Investment decisions should consider the individual circumstances of the particular investor. Any opinions or forecasts contained herein, reflect the subjective judgments and assumptions of the authors only, and do not necessarily reflect the views of Loomis, Sayles & Company, L.P. Investment recommendations may be inconsistent with these opinions. There is no assurance that developments will transpire as forecasted and actual results will be different. Information, including that obtained from outside sources, is believed to be correct, but we cannot guarantee its accuracy. This information is subject to change at any time without notice.

Commodities, interest, and derivative trading involve substantial risk of loss.

Any investment that has the possibility for profits also has the possibility of losses. 

Diversification does not ensure a profit or guarantee against a loss.

Market conditions are extremely fluid and change frequently.

Past performance is no guarantee of, and not necessarily indicative of, future results 

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