Fixed income Emerging markets debt

We bring deep expertise across Emerging Markets (EM) hard and local currency markets, blending macro insights and integrated strategies to deliver versatile, connected solutions for investors.
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Why partner with us Versatile strategies in emerging markets debt

Our EM Debt team offers full-spectrum coverage across hard and local currency markets. We combine macro insights with local expertise to deliver integrated strategies across EM credit, rates, and FX. With a collaborative, research-driven approach, we help clients diversify, manage risk, and tap into yield potential in today’s evolving global landscape.

Comprehensive coverage

We offer full-spectrum access to EM debt - hard and local currency - across credit, rates, and FX, backed by deep expertise and flexible strategies.

Integrated insights

Our global EM platform blends macro and country-level views, combining top-down and bottom-up analysis to help manage risk and uncover opportunity.

Collaborative approach

We connect teams across Invesco Fixed Income to deliver a unified perspective, integrating global insights with local expertise for smarter decisions.

$6B+ In assets managed

We offer a diverse range of products, including EM local, hard, and blended currency strategies.1

25+ yrs Experience

We have been managing emerging market debt portfolios for more than 25 years.1

90+ Countries

We cover numerous countries and integrate ESG into the investment processes.1

What we offer Featured funds

Frequently asked questions

Emerging market debt is the fixed income debt that is issued by countries with developing economies as well as by corporations within those nations. It includes local and hard currency.

Emerging market (EM) debt has delivered strong performance in 2025, demonstrating resilience throughout the global monetary policy cycle, despite elevated geopolitical uncertainty. Policy uncertainty and slowing US economic growth have challenged the narrative of US exceptionalism, contributing to a softening US dollar and creating a more favorable backdrop for EM debt, in our view. Looking ahead, we remain constructive on EM assets, supported by generally attractive valuations and compelling alpha opportunities across EM interest rates and foreign currency.

Local currency bonds are debt securities issued by sovereigns or corporates in their local currency. The return drivers come from local yields, capital appreciation (changes in yield curve or credit standing) and FX. Since countries can be at different stages in the economic cycle, interest rates and returns can be uncorrelated to those in developed markets. Hard currency bonds are debt securities issued by EM sovereigns or corporates in a foreign currency – usually in a developed market currency, such as the USD or Euro. Many low income, weaker developing countries, “frontier markets” are incented to issue in hard currency to attract foreign investment (perceived as less risky if issued as a USD or Euro asset) versus issuing in their local currency.

You can invest in emerging market debt by either investing in actively managed mutual funds or exchange traded funds (ETFs). Invesco offers a broad range of actively managed funds and ETFs. 

The integration of ESG into investment practice is rapidly evolving for fixed income investors. There is growing regulatory interest and market demand for sustainable investments. In addition to a growing preference for some investors.

The return drivers come from local yields, capital appreciation (changes in yield curve or credit standing) and forex (FX).

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    • Footnotes

      1 As of 30 June 2025.

       

      Investment risks

      The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

      Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date.

       

      Important information

      All information is provided as at 30 June 2025, sourced from Invesco unless otherwise stated.

      This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. Views and opinions are based on current market conditions and are subject to change. For information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English, French, German, Spanish, Italian), and the financial reports, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.lu. The management company may terminate marketing arrangements. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor.

    • EMEA4857386/2025