The podcast centers on the resilience of emerging market (EM) fixed income assets amid global volatility. It explores why EM assets have remained relatively stable despite events such as U.S. actions regarding Greenland and fluctuations in U.S. equities. One key factor discussed is the potential diversification away from U.S. assets, which have been favored for over a decade, towards undervalued EM assets. The conversation also addresses the technical signals indicating that EM currencies may be overbought, with a focus on an index that has historically signaled tactical reversals. Additionally, the panel highlights how tighter spreads are enabling lower-rated sovereigns to re-enter the market, citing examples like Ecuador and Pakistan, which are contemplating bond buybacks and new issuances, respectively.
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