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The Emerging Markets, current as of 1996:
- 45 Nations classified as Emerging Economies
- Total Outstanding: $350 Billion
- Population of about 2.6 Billion (1992), is in excess of 2/3 of world's total
- GDP of $3.5 Trillion (1991)
- Growth rate of 5% (1991)
- Most economically diverse group
- Fastest growing region
- Economies and infrastructure substantially underdeveloped
How Emerging Markets Debt compares to other non-investment grade instruments:
- Total return range of between -17% to +32%
- Yield pickup due to risk premium (high yield spread to US Tsy)
- Opportunity for capital gains: deeply discounted
- Comparable to US high yield market
- As portfolio diversification tool to achieve favorable returns relative to substantial risks