Analysis of Recent Election Outcomes in South Africa and Mexico

Carry has been the primary driver of EM risk premia in recent years, yet the landscape may be shifting as growth improves, inflation recedes and geopolitical uncertainty takes hold. In this month’s EM Lens & Look-Through podcast, Managing Director of Emerging Markets at TCW Penny Foley joins Bloomberg Intelligence Chief EM Credit Strategist Damian Sassower to discuss demand for idiosyncratic carry as investors look to EM for uncorrelated streams of future income. Foley and Sassower touch on election risk, foreign positioning, growth dynamics and central-bank policy divergence.