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Disclaimer
BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.
What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:
who holds an Australian Financial Services License
who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
that is a body regulated by APRA other than a trustee of:
(i) a superannuation fund;
(ii) an approved deposit fund;
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme.
within the meaning of the Superannuation Industry (Supervision) Act 1993that is a body registered under the Financial Corporations Act 1974.
that is a trustee of:
(i) a superannuation fund; or
(ii) an approved deposit fund; or
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme
within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.that is a listed entity or a related body corporate of a listed entity
that is an exempt public authority
that is a body corporate, or an unincorporated body, that:
(i) carries on a business of investment in financial products, interests in land or other investments; and
(ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
Fixed income
Emerging market debt (EMD)
An emerging market bond is a fixed income debt issued by countries with developing economies as well as by corporations within those nations.
EMD provides financing for emerging economies and offers diversification benefits to investors, as these markets may perform differently from developed markets. EMD includes both sovereign and corporate debt and can be issued in either local or hard currencies (like the US dollar). Investors are attracted to EMD for its potential for high returns, but they must also consider risks like currency volatility, political instability, and credit risk. Popular among income-seeking and growth-oriented investors, EMD plays a valuable role in diversified, global portfolios.
Timeline of emerging market debt
Early 20th century: Emerging economies issue bonds intermittently, with limited investor confidence.
1980s: US Treasury Secretary Nicholas Brady introduces ‘Brady bonds’ to help restructure debt in developing countries, especially in Latin America. Bonds are mostly issued in US dollars.
1990s: Growth in Brady bond issuance leads to increased interest in emerging market debt as an asset class.
2000s: Emerging markets mature and stabilize, issuing bonds more frequently in both US dollars and local currencies (local market bonds). Foreign corporations also begin issuing bonds, expanding global credit options.
2000s–2010s: Developing countries implement cohesive fiscal and monetary policies, boosting investor confidence and solidifying emerging market debt as a significant asset class in fixed income.