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        Insights   •   Emerging Market Debt

        Emerging Market Debt Commentary – November 2021

        Speculation around tighter US monetary policy, the emergence of a new coronavirus variant and country-specific political issues weighed on emerging market bond performance in November.

        December 9, 2021
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        Emerging market debt (in USD terms) recorded negative returns on US Federal Reserve Chair Jerome Powell’s more hawkish-than-expected congressional testimony in late November and as concerns mounted that the spread of the Omicron COVID-19 variant could have an adverse effect on global supply chains, thus delaying the recovery of travel- and tourism-dependent EM economies. EM hard currency inflows were modestly positive at $39m, while local currency outflows amounted to -$2.2bn last month.

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