Of all fixed income asset classes, emerging market debt stands to win or lose the most depending on the result of the upcoming US election. In this week’s Bond Bulletin, we discuss the outlook for emerging market debt and explain why the US election could be pivotal.

What does this mean for fixed income investors?

The current environment presents a complex landscape for emerging markets. While the fundamental backdrop for EM local debt remains relatively supportive with increased signs of further stimulus in China, the upcoming US election introduces a significant degree of uncertainty. Given the symmetry of risks associated with the election outcome, we prefer to keep our powder dry and maintain a neutral stance across EM local debt in the lead-up to the election. This cautious approach allows us to remain flexible and responsive to the evolving political and economic landscape, ensuring that we are well-positioned to capitalise on opportunities while mitigating risks as they arise.

About the Bond Bulletin

Each week J.P. Morgan Asset Management's Global Fixed Income, Currency and Commodities group reviews key issues for bond investors through the lens of its common Fundamental, Quantitative Valuation and Technical (FQT) research framework.

Our common research language based on Fundamental, Quantitative Valuation and Technical analysis provides a framework for comparing research across fixed income sectors and allows for the global integration of investment ideas.



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