JEMTF - A Stronger Second Half For Emerging Markets Debt?

2024-07-31 01:00:00 ET

Summary

• We believe EM debt offers an attractive investment opportunity within the fixed-income space.
• We believe the administration of Mexican President-elect Claudia Sheinbaum Pardo should support Pemex.
• India has relatively high economic growth, resilient credit conditions, and likely policy continuity.

Despite the uninspiring performance of emerging markets ((EM)) debt in the second quarter, we expect a stronger second half of the year characterized by resilient economic growth, lower global rates, and improving global liquidity conditions.

Macro Forces Drive Performance

EM debt is driven by two predominant macro forces - global economic growth and global liquidity conditions - and we have a constructive near-term view of global economic dynamics and expect a gradual improvement in global liquidity conditions....

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