Emerging markets draw investors back as yields narrow
Fund managers are increasing exposure after two years of outflows from developing economies.
CN
Clara Nyberg
August 4, 2026 · 3 Min Read
Investors are returning to emerging market debt and equity, drawn by valuations that lagged developed markets through the tightening cycle.
Fund flows have turned positive for a third consecutive month, though managers stress that allocations remain below pre-tightening levels.
Risks remain concentrated in countries with heavy foreign currency borrowing.