EM debt is back, a source of income
Play China fast-track reopening
Opening up opportunities on EM equity
The rise of ESG in emerging markets
After the surge in yields in 2022, EM bonds offer an interesting entry point in terms of spreads and carry.
On the back of an expected less aggressive Fed, we are positive on LC and FX. But we believe investors should focus on countries where CB have been proactive in anchoring inflation and are at the end of their tightening cycles.
The abrupt turn in zero-Covid policy should continue to support China in the coming months.
China’s reopening has been a game changer for Chinese equity and could be a catalyst for some EM and Asian countries, as well as commodity exporters.
EM equities should start to benefit from the approaching conclusion for Fed tightening and a stable dollar
A selective approach and timing are key. Investors should focus on fundamentals and domestic growth amid increasing fragmentation in the EM.
Growing investor demand for green, social and sustainability-linked bonds could help achieve a green transition in EM and low-income countries.
The sustainable bond market is rising globally and becoming crucial for EM.
Main convictions 2023
During 2023 depending on the backdrop
Source: Amundi Institute as of 19 April 2023. EM: Emerging Markets. LC: Local Currency.