EM IG Corporates: 2H26 Outlook and Sector Strategy

EM IG Corporates: 2H26 Outlook and Sector Strategy

Erick Vega, CFA: Senior Analyst, Emerging Markets Corporates
Winnie Cisar: Global Head of Strategy
Luke Jensen: Analyst – Quantitative Strategy
Wen Li, CFA: Head of Metals & Mining
Michael O’Brien: Senior Analyst, Paper & Packaging, Homebuilders
Andrew Brady: Head of Basics
Lakshmanan R, CFA, FRM: Head of South & Southeast Asia Corporates, Head of GCC Corporates
Nicole Chua: Analyst, S&SEA and GCC Corporates
Trung Tran: Senior Analyst, APAC Insurance and GCC Banks
Jonathan Tan Jun Jie: Analyst, S&SEA and GCC Corporates
Zoey Zhou Qianyun, CFA: Analyst, East Asia Corporates
Karen Wu, CFA: Senior Analyst, Financials
Lim Ze Hao, CFA: Analyst, APAC Financials and GCC Banks
Stephanie Sim, CFA: Analyst, Strategy and East Asia Corporates
Nicholas Chen: Analyst, East Asia Corporates

9 July 2026

Download the Full Report to gain insights on:

How shifting EM investment grade valuations could affect spread and return opportunities.
What slowing fund flows reveal about market support and future credit performance.
Why rating migration trends may reshape emerging market credit quality.
How regional supply and refinancing patterns could influence technical conditions.
Which sectors appear best positioned amid changing macro and credit dynamics.

Executive Summary

Emerging market investment grade spreads remain resilient despite a challenging environment. Returns increasingly depend on valuation discipline and market technicals.

Credit quality stabilization appears to have reached an important turning point. Rating trends now suggest greater attention to issuer differentiation.

Fund flows continue supporting the market; however, momentum is moderating. Demand remains concentrated across selected regions and sectors.

Regional supply conditions remain supportive for several market segments. Therefore issuance dynamics continue influencing relative value opportunities.

Sector performance is becoming increasingly driven by issuer fundamentals. Meanwhile investors face a more selective credit environment.

Fill out the below form to view the full article:

Please note that we can only respond to valid business email addresses and the interview is already available to clients.

Recently Published

Research

All Covenant-Review Autos US CR Quarterly Q1 Basic LevFin-Insights Telecommunications May GMU Financials CreditSights-Research Utilities Case Studies show-home show-initiation page-home Municipals SLRs TMT Asset Management Resources Pharmaceuticals June GMU Energy Research Gaming/Leisure Webinar Related Resource Industrials Politics Media US Special Sits Outlook Consumer Tariffs Special Situations Euro Autos: Barbarians at the Gates Corporate Private Credit Aerospace/Defense U.S. Autos Expert Panel Covenants Bonds Real Estate EU Special Sits Outlook Strategy Post Petition Services July GMU ESG Chemicals Iran Asia in Focus 2H26 ESG-Home Emerging Markets Banks EM Outlook Outlooks-Home Transportation Construction Technology Insurance Asia in focus webinar Manufacturing EMEA CR Quarterly Q1