HSBC’s Ulgen on Emerging-Market Fundamentals, Sentiment: EM Lens

Murat Ulgen, Global Head of EM Research at HSBC, and BI’s Chief Emerging Markets Credit Strategist Damian Sassower discuss how US yields and the dollar have driven emerging-market risk premiums and how resilient the asset class has been to rates repricing throughout 1H. They note dispersion within the broader market, the role of carry and the drivers behind the sentiment change in specific geographies - notably a curtailed bullishness for Latin America, and a shift toward Central and Eastern Europe and Africa. Their conversation spans Turkey, South Africa, China (and its EM role) as well as frontier and distressed markets.