Artisan Canvas

When launching an emerging markets (EM) debt fund, one of the most consequential decisions occurs well before the first trade: selecting a global custodian. It is an infrastructure choice that quietly, but decisively, shapes the investable universe—and by extension, a fund’s alpha potential..

In EM debt, custody is not simply a utility. It is the gatekeeper.

The impact of AI in healthcare is often framed as broad disruption, while in practice, the effects are likely to be more selective and uneven. While AI is likely to reshape parts of the industry, the majority of health care value is tied to biology, regulation and physical infrastructure, areas where substitution risk is limited.

Foreign exchange (FX) is often the primary driver of risk and return in emerging markets (EM) debt investing—not a back-office utility or afterthought to bond selection. Yet many managers still leave standing FX instructions with custodians to fund their bond trades, effectively outsourcing one of the most consequential components of the investment process. 

EM FX is structurally different from other asset classes—and that difference matters. The EMsights Capital Group examines how EM debt managers are using FX prime brokerage and clearing to reduce hidden costs, manage counterparty and settlement risk, and improve execution in complex currency markets.

Emerging Markets (EM) debt had quite the run in 2025. Hard currency sovereigns, local currency sovereigns and corporates all joined the rally, each delivering strong performance. Spreads are tight, volatility remains subdued and risk appears comfortably priced — perhaps too comfortably. 

EM debt has had a banner year thanks to tight spreads, declining yields and improving sentiment. But Senegal is an unwelcome reminder that not every sovereign is enjoying the party. While the asset class rallies, Senegal’s dollar and eurobonds are hovering just above distressed territory, making it one of the few that didn’t get the invitation.

A Q&A with Analyst Scott Hall, a member of the Artisan U.S. Value team.

The bank loan market has evolved substantially over the past two decades, creating significant potential opportunities for active managers.

If you had the potential opportunity to increase returns while reducing risk, wouldn’t you take it? 

In the spirit of continuous improvement, the Antero Peak Group actively reads to further develop perspectives on financial markets and investing, leadership and life experiences. Please see a list of books that have challenged our thinking over the last several years.