Your Questions Answered: a quarterly Q&A series featuring the top 10 questions that clients and prospective clients ask our investment teams.

Though caught between two worlds, fallen angels merit a permanent home in a strategic asset allocation. Discover why

The team running EM debt portfolios at Eaton Vance has taken a unusually bullish stance on the asset class. Across all risk factors – EM FX, EM local rates, EM sovereign credit and EM corporate debt – the team has constructive views. A key reason here is the supportive macro environment for the asset class and the belief that this supportive environment will continue. On a one-year view, EM local-currency-denominated debt is the team’s top pick.

But the exclusion of some areas brings opportunity for reform

Colin Fleury, Head of Secured Credit London, says a relatively constructive view for credit markets may seem strange, but there are reasons he believes stress in the markets will be manageable.

Fallen angels have historically delivered excess returns. Here’s how.

Downgrades of investment grade bonds to fallen angels continue apace in 2020. Through September 30, $179.6 billion, across 43 companies and comprising over 230 bonds, has been downgraded. The asset figure already exceeds the full calendar years of 2009...