News · Publication · Video · Podcast
LGT Capital Partners whitepaper on emerging and frontier market sovereign debt now available
A new whitepaper from LGT Capital Partners explores the evolving landscape of emerging and frontier market sovereign debt, highlighting structural improvements and fresh opportunities for investors.
Amid rising geopolitical tensions, increased government intervention and a weakening US dollar, bonds in these markets are growing in appeal relative to those of developed economies. Many emerging and frontier markets now exhibit stronger fiscal discipline, higher real yields and more stable risk profiles.
Frontier markets, in particular, offer notable diversification benefits and resilience. With sovereign debt predominantly held by local investors, these markets are less exposed to global shocks. Reflecting these dynamics, LGT Capital Partners maintains an overweight allocation to local currency bonds in these regions, supported by robust fundamentals and credible policy frameworks.
The whitepaper also details the firm’s investment approach and focus on ESG integration. Looking ahead, the anticipated launch of a dedicated benchmark for frontier market local currency bonds in 2026 is expected to further support institutional adoption.
A video podcast with Jetro Siekkinen, Head of Emerging Market Debt, is also available on this page, offering further insights into the whitepaper’s findings and the outlook for the asset class.
