In Managing Risk in the Emerging Markets 2.0, Jeremy Schwartz reviews the development of a burgeoning asset class; emerging markets corporate bonds, and examines how blending EM corporates with an EM equity allocation has the potential to lower volatility during tough periods for the equity markets. The paper finds that a hypothetical 50/50 split between USD denominated EM corporate bonds (defined as the JPMorgan CEMBI Broad Index) and EM equities (defined as the MSCI EM Index) had 6.30% higher average annual returns with more than 10% lower average volatility than a hypothetical allocation of 100% to MSCI EM. Furthermore, the blended allocation resulted in risk levels, or a standard deviation, similar to that of the S&P 500.