EM Debt Finds Its Footing as Spreads Hit Multi-Year Lows

October’s emerging market debt commentary offers a clear view of how easing global policy and firmer macro data shaped returns across hard- and local-currency markets 

• Hard-currency sovereign spreads tightened to multi-year lows as the Fed’s second consecutive rate cut supported risk appetite and compressed yields across high-yield issuers 

• Local-currency debt delivered modest gains, lifted by benign inflation and improving rate-cut expectations, though FX performance lagged on renewed dollar strength 

• Country-level dispersion remained wide, with Peru, Chile, and Indonesia outperforming while Thailand and Central Europe struggled under political and FX pressure 

For a deeper read on positioning, flows, and the policy path shaping EM’s next leg, explore the full report.