EMB - Re-Emerging Markets
2024-03-18 10:10:00 ET
Summary
- According to data from J.P. Morgan, 2022 was the worst-ever year for outflows from emerging markets debt, and 2022 – 2023 saw the worst back-to-back annual outflows.
- That is not entirely surprising, given the upward movement in developed market bond yields and the U.S. dollar. Nonetheless, we think it may have been excessive and could be set to reverse.
- Global interest rates appear to have peaked, and emerging market fundamentals are generally strong, characterized by resilient growth, with well-entrenched disinflation dynamics and contained default risks.
By Rob Drijkoningen and Gorky Urquieta
After two years of record-breaking outflows, is emerging markets debt due for a turnaround? ...
Re-Emerging Markets