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DoubleLine Highlights Emerging Market Opportunities Despite Middle East Tensions

DoubleLine Capital sees a "virtuous feedback loop" in emerging markets as a weakening U.S. dollar and ongoing central‑bank rate cuts create attractive local‑currency fixed‑income opportunities. While recent U.S.-Israel strikes on Iran sparked a sharp sell‑off in EM currencies and equities, the firm argues the turbulence is short‑lived and does not alter the longer‑term structural upside. DoubleLine’s portfolios are deliberately under‑exposed to the Middle East and less sensitive to interest‑rate moves than benchmarks. The manager highlights stronger inflation and fiscal positions in many EM economies, especially commodity exporters like Brazil, Chile and South Africa.