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Bond Bulletin

As global growth proves resilient and the Federal Reserve (Fed) is set to cut interest rates, hard currency emerging market (EM) debt—sovereign and corporate—stands out as a beneficiary. This week’s Bond Bulletin looks at EM debt’s solid fundamentals and supportive technicals that could drive performance and create opportunities for investors.

What does this mean for fixed income investors?

Hard currency EM debt offers a balanced mix of income and resilience. Stable growth, contained inflation and a favourable ratings trajectory point to continued fundamental strength. With the Fed’s easing cycle and weaker US dollar reducing external headwinds, spreads may stay tight while elevated yields provide attractive carry and the potential for capital gains as global rates fall. Positive flows and a supportive issuance profile add to the case for maintaining or adding exposure. Selectivity remains key—country and credit differentiation will matter—but the asset class is well positioned to deliver attractive risk-adjusted returns in the months ahead.

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.



NOT FOR RETAIL DISTRIBUTION: This communication has been prepared exclusively for institutional, wholesale, professional clients and qualified investors only, as defined by local laws and regulations.
The views contained herein are not to be taken as advice or a recommendation to buy or sell any investment in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit and accounting implications and determine, together with their own financial professional, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.
J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at www.jpmorgan.com/global/privacy.
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