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Corporate Emerging Market Debt Poised to Shine in 2021 (12/15/2020)We think EM corporates will outperform EM sovereign credits ... EM investors are still largely invested in EM sovereigns, not EM corporates. The EM hard currency corporate market is dominated by Asian issuers, of which more than half are China issuers. Given the V-shaped recovery of China and the positive spillovers onto much of the region, we expect Asia to outperform other EM regions. We also expect Asian corporates to outperform corporates from all other EM regions. When you take into account a yield of about 7.4% in Asia high yield, with help of some credit spread tightening, we are looking at returns of high single digits to 10% next year.