Dollar Debasement Backs Bull Case for Emerging Bonds, Funds Say

Emerging-market bonds are expected to extend a “stellar” year of performance as renewed flows from the so-called “dollar debasement trade” drive additional inflows. Fund managers argue the return of this strategy should further support EM bond demand through currency/liquidity conditions tied to the dollar. Overall, the news is constructive for EM fixed income, though it provides no specific bond spread or return figures.