Emerging Market Debt:
Where We Started,
Where We Are, and
Where We’re Going

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Executive Summary

Strong and largely unanticipated macro shocks dominated global markets in 2022, negatively impacting investor returns across a wide range of asset classes. High inflation prompted aggressive monetary tightening across most of the world, while a divergent China suffered a steep economic slowdown as it remained committed to its Zero Covid Policy. Meanwhile, the conflict in Ukraine further disrupted supply chains and sent commodity prices soaring, including food and energy. These events have led to a significant increase of global bond yields, a repricing of risk assets, and a stronger dollar, all of which are painful for Emerging Market (EM) issuers.