Recurring series
HSBCGEMs in the Week
Finvaulta tracks 4 editions of GEMs in the Week from HSBC, published between June 12, 2026 and July 3, 2026. Each edition is summarized on its own page.
Latest edition · July 3, 2026
HSBC GEMs in the week What’s cheap going into Q3? The tables have turned
HSBC's latest fundamental valuation update suggests a rotation in emerging markets, with EM local currency debt now offering the best value, while equities and external debt are trading at premiums. This shift, combined with light investor positioning, may favor LCD performance in Q3.
Heading into Q3 2026, HSBC reports a material shift in emerging market valuations. EM local currency debt (LCD) has emerged as the cheapest major asset class, trading at a 0.4 standard deviation discount to fundamentals, while EM equities and external debt (EXD) now screen at a premium. Despite broadly constructive sentiment, investors remain underweighted in EM, providing a potentially supportive technical setup for LCD amidst easing inflation pressures and a summer outlook that, while challenged by the prospect of a strong US dollar, favors selective exposure to higher real rate markets.
Read the latest edition in fullKey takeaways from the latest edition
- 1.EM local currency debt (LCD) is now the cheapest major EM asset class based on fundamental valuation models, trading at a 0.4 standard deviation discount.
- 2.EM equities and external debt (EXD) currently screen at a premium relative to fundamental valuations.
- 3.Investor sentiment remains downbeat with increased underweight positioning, though the overall market backdrop is viewed as constructive.
What this series covers
- EM valuations going into Q3: the multi-asset view
- Disclosures & Disclaimer
- Multi-Asset Emerging Markets
- No country for bears
- Performance this week
- Equity
- Fixed Income
- FX
- EM Performance: Equity
- EM Performance: Local currency debt
- EM Performance: External debt
- EM Performance: FX
- EM Relative Performance
- EM Performance: YTD total return breakdown
- Correlations
- Global Indicators
- EM Activity
- EM Inflation
- EM Monetary Policy
- Global Monetary Policy and Financial Conditions
- EM Sentiment and Positioning
- CTA positioning
- EM Valuations
- EM Earnings
- EM Carry-to-volatility ratios
- Total Financial Flows
- Monitoring Japanese Flows
Edition archive
Series at a glance
- Editions tracked
- 4
- First edition
- June 12, 2026
- Latest edition
- July 3, 2026