How do Emerging Market Bonds behave when the Fed cut rates?
The Weekly Globe: in this article, we analyze interest rate cycles over the past 24 years and compare them with the behavior of EM bond spreads to support our optimistic outlook for this asset class
By Marcelo Menusso, Chief Credit Strategist
Emerging market (EM) bonds delivered strong performance in 2025 despite global volatility. However, with markets now pricing in the possibility that U.S. interest rate cuts could begin as early as the next Federal Reserve meeting in September, what can we expect from this asset class going forward?
In this article, we analyze interest rate cycles over the past 24 years and compare them with the behavior of EM bond spreads to support our optimistic outlook for this asset class at this moment.
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