Emerging Market Debt Outlook

State Street Global Advisors presents a constructive outlook on Emerging Market Debt (EMD) for 2025, emphasizing the influence of U.S. monetary and fiscal policy on EM assets.

Key Insights:

• Hard Currency Advantage: Continued preference for hard currency EMD amid stabilizing U.S. Treasury yields and idiosyncratic credit opportunities in Argentina, Egypt, and Sri Lanka.
• Fed-Driven Tailwinds: U.S. rate cuts and a weaker dollar could support both hard and local currency EMD.
• -Risks Remain: Tariffs, geopolitical conflict, and a volatile policy backdrop under the Trump administration may weigh on sentiment.

Access the full report for insights into allocation strategy and macro scenarios shaping EM debt in 2025.