With geopolitical events dominating 2016, emerging markets debt once again proved resilient under stress, rallying strongly after a steep sell-off in November.

With geopolitical events dominating 2016, emerging markets debt once again proved resilient under stress, rallying strongly after a steep sell-off in November. We expect a mostly encouraging outlook for the emerging markets debt asset class in 2017, with a number of key themes coming to the fore:

- Global emerging markets growth still outpacing that of developed markets

- Oil prices being revised upwards following last year’s OPEC agreement – this continues to prove positive for oil credits such as Kazakhstan or Ecuador

- High demand for emerging markets new issues, allowing emerging markets countries and corporates to front-load issuance at the start of the year

- Continued uncertainty about US policy and the global macro environment

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