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
- 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.
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