EM January Repeat Riff Needles Nostalgia Nod

Summary

The episode examines the surge in emerging market (EM) debt and equity performance through January 2025, noting record growth rates and unprecedented fund inflows. It compares today’s bullish sentiment to the pioneering phase of EM investing four decades ago, highlighting both the similar optimism and the vastly different macroeconomic backdrop. Key data points include a 9% rise in MSCI core and frontier benchmarks, $40 billion in new fund flows, and issuance hitting $90 billion, surpassing 2020 levels. The discussion underscores the implications for asset managers and capital market developers, especially newcomers navigating this renewed wave.