Insights

Emerging market debt: Currencies, curves, and confidence

Discussing how emerging market debt weathered global volatility, capitalized on dollar weakness, and attracted renewed investor interest in Q2, along with insights on where the opportunities may lie in the months ahead.

Authors

Siddharth Dahiya

Head of Emerging Market Corporate Debt

Paul Mohr

Senior Director, US Institutional Business Development

Duration: 21 mins

Date: Jul 10, 2025

“Policymaking in emerging markets (EMs) becomes much easier when the dollar is weakening … In a stronger EM FX/weaker dollar environment, it is generally quite positive for the EM market.”

In the latest Quarterly Perspectives podcast, Global Head of Emerging Market Debt Siddharth Dahiya joins host Paul Mohr to review the second quarter of 2025 before turning their focus to the impact of continued dollar weakness, moderating inflation, and monetary easing, and why their outlook remains constructive for the asset class.

Transcript

Tune-in to listen to our Quarterly Perspectives episodes on Apple Podcasts, Buzzsprout, and Spotify.

Important information

Projections are offered as opinion and are not reflective of potential performance. Projections are not guaranteed and actual events or results may differ materially.

Foreign securities are more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards, and political and economic risks. These risks are enhanced in emerging markets countries.

Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), call (some bonds allow the issuer to call a bond for redemption before it matures), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).

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