Western Asset Emerging Markets Debt Fund

EMD

Market cap $600M

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

Emerging market debt remains an important area for investors seeking consistent income and diversification. Gain insight from Western Asset Management's Chris Kilpatrick, Portfolio Manager for the Western Asset Emerging Market Debt Fund. As he explores potential opportunities for investors, current market tailwinds and headwinds, and how emerging market debt can complement U.S.-centric portfolios.

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

EMD is a well-managed, high-yield emerging market bond fund, with strong credit research and a focus on income over capital appreciation. Recent performance has been solid, aided by a significant narrowing of the discount to NAV, but this has reduced its relative value. Leverage costs are high and may be a headwind, while the current discount is much lower than historical averages, making the fund less attractive now.

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

NEW YORK--(BUSINESS WIRE)--Category: Financials.

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

The Western Asset Emerging Markets Debt Fund Inc offers a high yield of 11.55%, outperforming most domestic junk bond funds, but faces risks from U.S. trade policies. The EMD closed-end fund's heavy allocation to U.S. dollar-denominated debt exposes it to risks if emerging markets struggle to obtain U.S. dollars due to reduced trade surpluses. Despite a high yield, the fund's performance is hindered by its U.S. dollar exposure, making funds with more local currency bonds potentially more attractive.