Emerging Markets Debt delivered strong second-quarter performance despite heightened volatility driven by geopolitical developments, changing Federal Reserve expectations and commodity price swings. Supported by attractive yields, resilient fundamentals, improving investor sentiment and a favorable technical backdrop, the asset class continued to compare favorably with many developed-markets fixed income sectors.

Key takeaways

• Strong fundamentals and attractive yields supported performance despite macro uncertainty.
• The global CapEx cycle remains a meaningful tailwind for growth across emerging markets.
• Market volatility continues to create opportunities for active managers to identify differentiated country and issuer opportunities.