Emerging markets bonds have demonstrated notable resilience, largely due to their strong fiscal discipline and robust currency performance. In contrast, developed markets are currently grappling with significant fiscal challenges and weaknesses in their policy frameworks. This contrast highlights the ongoing strength of emerging markets, as noted by VanEck, which points to the ability of these bonds to thrive even in the face of adversity faced by more established economies. The fiscal discipline observed in emerging markets plays a crucial role in their ability to outperform their developed counterparts, suggesting a shift in the dynamics of global finance.
