The Impact of Rising Rates on Emerging Markets

Last year, when rates were going up and people worried about growth, EM didn't perform very well. But this year, interest rates are rising not because of global inflationary fears but because economic activity in the United States is a little bit stronger. Not every country is affected by higher rates in the same way; some are much more resilient than others. The opportunity set for emerging market debt is actually very heterogeneous.