EMD in Focus: Why Local Markets Lead in a Fragmented Macro Landscape

This whitepaper by DWS explores the evolving dynamics of Emerging Market Debt (EMD), highlighting asset class resilience and shifting return drivers in a post-globalisation era.

• Local currency EMD offers attractive real yields and improved fundamentals, supported by inflation convergence and credible central bank actions.

• Global fragmentation reduces correlation across markets, creating alpha opportunities through active, country-specific positioning.

• Dollar-denominated debt faces refinancing headwinds, while ESG integration is reshaping sovereign risk analysis and investor engagement.

Dive into the full report to understand how selective exposure and macro-aware strategies can unlock value in an increasingly dislocated EMD universe.