EM Frontier Local Currency Markets: A Resilient Asset Class in Any Global Risk Environment?

After multiple global crises, emerging market (EM) frontier local currency markets have repeatedly demonstrated their resilience. They are characterised by a high share of local bondholders and are therefore better protected against abrupt market movements. In addition, high yields and disinflation in some markets create opportunities for attractive real yields - although active country selection is essential to navigate these opportunities effectively.

While geopolitics and U.S. policies remain key global discussion points, their impact is limited to specific countries in the diverse frontier universe. Some frontier countries are better positioned through economic adjustments to embark on a journey toward sustainable and inclusive growth. However, rising U.S. yields and a strong dollar could pose challenges in the first half of 2025.

Ulla Huotari, Portfolio Manager of the Aktia EM Frontier Local Currency Bond strategy, invites you to join the ChampionsCall to explore Aktia's insights and perspectives on this emerging market bond asset class.