Opportunities for Outperformance in Frontier Fixed Income Markets

Abstract

Frontier markets made up eight of this year’s top 10 performers in external sovereign debt. With a rebound in commodity prices from the lows at the beginning of this year, and an easing of fears about China, selected frontier markets have seen remarkable year-to-date returns. Will frontier markets continue to outperform in the year to come? Are they just proxies for commodities and China risk? In this note, we take a more systematic look at frontier markets, their role in emerging market (EM) external debt portfolios, and portfolio allocation.

Teal Emery

Independent Research Analyst

I turn messy data into actionable insights.