Emerging Markets Prove to Be One of the Year's Worst Performers in Credit

The video discusses the performance of emerging markets credit, which has seen a 4% loss year-to-date, compared to US investment grade credit's 3.75% loss. High yield has been the outperformer with minimal losses. Analysts predict high yield may suffer next year, while emerging markets credit could be a better option. Accessing less liquid markets poses challenges, with EMB ETF being a popular but underperforming choice. Liquidity concerns and risk compensation are key considerations for investors.

What is the outlook for high yield credit next year according to analysts?

What potential risks are investors considering when looking at emerging markets?