Emerging Markets Outperform Developed Counterparts in Bond Sector
Emerging markets are asserting fiscal dominance as their bonds increasingly outperform those of developed nations. VanEck highlights this trend, noting that economic reforms and disciplined fiscal policies in emerging economies have bolstered investor confidence.
The resilience of EM bonds stands out amid global economic turbulence, with benchmark indices like J.P. Morgan's GBI-EM and EMBI tracking their progress. Yet risks remain—currency volatility, political instability, and thinner liquidity pose challenges for investors venturing beyond developed markets.