Emerging Market Debt

Emerging Market Debt refers to loans or bonds issued by developing countries to raise funds for growth and development projects. Investors buy these securities expecting returns through interest payments, but they also face higher risks due to economic, political, or currency instability in these countries. Such debt offers potential higher yields compared to developed markets, reflecting both opportunity and risk associated with investing in less stable economies. It plays a crucial role in global finance by connecting investors with emerging markets' growth prospects while requiring assessment of associated risks.