Emerging markets (EM) countries have grown significantly over the past several decades—in terms of both economic progress and advancements in the strength of their institutions. Better monetary and fiscal policies in many EM countries have led to better economic management. This, in turn, has helped to improve capital reserves that allow EM countries to address short-term issues more effectively than in the past and increase their ability to repay debt. Collectively, EM countries have grown more resilient to external shocks, with a greater ability to navigate defaults, geopolitical tensions, and volatility in oil and other commodity prices.

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This commentary is the opinion of Stone Harbor Investment Partners. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.

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