that from his perspective what started as a challenging year for EM is now turning into a favourable backdrop thanks to inflation starting to moderate globally .
Burke explains : “ At MarketAxess , we have seen huge growth in local markets coupled with an increase in larger trade sizes . In Q1 of this year , our local market volumes were up 23 % year-onyear , while trades larger than $ 25 million were up 23 % in 2023 . I expect this trend to continue throughout the remainder of the year as the macro backdrop improves and rate cuts are all but guaranteed .”
Notably this is an area characterised by its ebbs and flows , continually impacted by major global
“ In this world , it ’ s about selectivity . Emerging market fixed income is a bit of a stock picker ’ s paradise .”
GEOFF YU , SENIOR EMEA MARKET STRATEGIST
AT BNY gregate Index , which is a bellwether that captures the world of global fixed income .”
The trend is our friend The consensus appears to be that this is firmly an area where the best is potentially yet to come . As Jean-Charles Sambor , head of emerging market debt at TT International Investment Management tells The TRADE : “ The emerging markets fixed income sphere is recovering , and we expect inflows back to the asset class after years of investor exodus .”
Dan Burke global head of emerging markets at MarketAxess and former global head of credit e-trading at Standard Chartered , agrees , confirming events including the pandemic , war in Ukraine , and the intense tightening of monetary policy .
Speaking to The TRADE , Niels Nooy , EM execution specialist at Liquidnet , says : “ I have been involved in emerging markets since the early 1990s and have seen many market cycles over that period […] Traditionally , with higher interest rates , capital tends to leave emerging markets because there ' s less of a need for the extra yield pick-up . Now ,
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