Hanya Investment said emerging-market (EM) bonds have moved beyond the narrow
distressed niche of the 1990s; USD sovereigns rated investment-grade rose from
0% in 1991 to over 50% in 2025. The firm warned large fiscal needs and
structurally high social spending in some developed markets could complicate a
sustained decline in inflation. AI-driven disruption, geopolitical tensions,
shifting trade blocs and energy-security concerns are increasing dispersion in
EM growth, inflation and policy rates, creating selection opportunities across
credits and duration.
