Emerging Market Bond Top List And Themes

The report maintains an Attractive view on emerging market credit, emphasizing income and diversification over spread compression. UBS notes that elevated yields and strong fundamentals continue to support the asset class despite recent geopolitical volatility.

Key Takeaways

• 1.Elevated all-in yields and supportive fundamentals continue to underpin an Attractive view on EM credit.
• 2.With spreads near long-term tights, investors should focus on income, selectivity, and diversification rather than chasing spread compression.
• 3.Emerging Europe presents a differentiated outlook based on country-specific fiscal discipline and policy credibility.

Table of Contents

• Emerging market bonds
• A clean sheet in the first half
• Strong fundamentals underpinned by issuances and positive rating migration
• Global bond yields should fall despite near-term volatility
• Focus on emerging Europe
• Changes to our Emerging Market Bond Top List selections
• Restrictions for EEA-domiciled clients
• Opportunities in sukuk
• Opportunities in EUR-denominated bonds
• Opportunities in short- and medium-term bonds

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