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Investing in Emerging Markets
Emerging markets are seen as popular economies to invest in as they offer significant growth potential which could leads to massive returns if the investments are placed in the right market areas.  Increased global economic output and stock market capitalization has made the emerging vary favorable towards investors.

A few decades ago, the emerging market bonds were mainly issued in U.S. Dollars as this is the main global currency.  A new program issued by the ex-Treasury Secretary Nicholas Brady initiated a new program which allowed  the emerging markets to issue Brady Bonds which saw many Latin American countries issuing more debt.  This caused the emerging market debt to grow.

Who issues the debt?
Debt is mainly issued by sovereign funds.  EMD (Emerging Market Debt) usually offers rated below investment grade and with the recent financial crisis, it is entirely possible for emerging markets to be rated at the same level, if not higher, than developed markets.