Emerging Market Debt Sees Sustained Net Capital Inflows
Emerging market debt shifted toward net inflows in 2025 and continues the trend into 2026 as investor confidence in creditworthiness grows.
Neuberger Berman reports that emerging market debt experienced a shift toward net inflows in 2025, a trend that has persisted into 2026. This reversal follows several years of significant capital outflows from these markets.
Rob Drijkoningen of the investment manager attributes the renewed investor interest to the improved creditworthiness of the involved countries. He advocates for the use of local currency debt as a strategic tool for investors.
Drijkoningen suggests that this asset class provides a necessary means to diversify portfolios that currently maintain concentrated exposures to the United States.
