In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, sits down with Sid Dahiya, Head of Emerging Market Corporate Debt at Aberdeen, to discuss the evolving landscape of emerging market debt and the extension strategies that can unlock value for insurance investors. Sid provides an in-depth analysis of the size and characteristics of the EM corporate debt market, comparing it to other asset classes such as U.S. high yield. He also explains how Aberdeen’s proprietary tools and bottom-up investment approach can help manage risk in this complex asset class. Sid offers insights into the unique opportunities in emerging markets, including the impact of political risks and how global trends like de-globalization are shaping investment opportunities.
Sid also delves into specific extension strategies, including buy-and-hold approaches, crossover investments, and thematic strategies designed to capitalize on long-term trends. He highlights how insurance investors can strategically diversify their portfolios while balancing risk and return, particularly in the underappreciated areas of EM corporate debt. If you’re looking to expand your understanding of EM debt and its role in insurance asset management, this is a must-listen episode.