Bloomberg Surveillance · Friday, September 4, 2026
Emerging market local currency debt is considered a compelling investment, offering value in both carry and FX from a valuation perspective. While the dollar's strength has presented challenges this year, the longer-term outlook for a weaker dollar remains, with specific countries like Brazil showing potential due to upcoming elections.
“But for me, I love the fact that you're still long and strong EM local currency debt. Talk to us a little bit about your basis for that position. I mean, obviously, we've seen the dollar off, you know, round about 1.5% this year. Is this more of a currency play or do you see something deeper going on?”
“I think it's both. I think the, again, 2025 felt like a clear weaker dollar story. This year has been a bit more challenged with the cross currents, but it still, I think, is a place where there's value in EM carry and some of the high yielders from an FX perspective.”
“And then you look at some of the country specific, like Brazil with the election coming up, you've It's traded poorly this year, but we do think that there's value.”