Emerging market debt issuance is on track to break records for the second consecutive year, according to Stefan Weiler, head of CEEMEA Debt Capital Markets at J.P. Morgan. Since 2022, when issuance totaled some $110B, volumes have climbed steadily each year, with 2026 poised to surpass last year's historic highs, Weiler told CNBC. He said the current wave of capital flowing into emerging markets marks a departure from past boom-bust cycles, appearing structural rather than opportunistic, unlike the hot-money dynamics behind the late-1990s Asian financial crisis. Emerging markets have attracted net inflows for 16 consecutive months, excluding a brief disruption in March tied to geopolitical tensions, with anticipated inflows of $40B to $50B this year, and spreads remain near historic lows. Weiler noted that African sovereigns, particularly Nigeria and Angola, have emerged as standout performers as investors seek alternatives to traditional Middle Eastern oil exporters, while many emerging market governments are diversifying funding by issuing more debt in local and niche currencies to reduce exposure to U.S. dollar volatility. J.P. Morgan Asset Management added that if the Federal Reserve continues to hold rates steady while other central banks tighten, narrowing short-term yield differentials could strengthen foreign currencies against the dollar.
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Taiwan Semiconductor Manufacturing Co. Ltd.JPMorgan Chase & CoJ.P. Morgan's DCM head says EM debt issuance is on track to break records again, boosting its underwriting/debt capital markets franchise.
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