In describing the approaches to investing in emerging markets credits, Christopher Taylor wrote the following in “Challenges in the Credit Analysis of Emerging Market Corporate Bonds,” Chapter 16 in Frank J. Fabozzi (ed.), Th e Handbook of Corporate Debt Instruments

(New Hope, PA: Frank J. Fabozzi Associates, 1998), p. 311:

Th ere traditionally have been two approaches to investing in emerging market corporate bonds: top-down and bottom-up. . . . Th e top-down approach essentially treats investing in corporates as “sovereign-plus.” Th e bottom-up approach sometimes has a tendency to treat emerging market corporate as “US credits-plus.”

What do you think Mr. Taylor means by “sovereign-plus” and “US credits-plus”?