EM Monthly: Resilient and ready

July 9, 2025

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In a world of diverging monetary paths and rising event risk, EM credit offers diversification, income and potential valuation upside for global credit allocators, argues Warren Hyland.

The first half of 2025 delivered a series of macro shocks that influenced global risk appetite and reshaped return dynamics across asset classes. From a sharp escalation in trade tensions to military conflict in the Middle East, geopolitical risk returned as a dominant market driver, causing volatility and uncertainty across regions. Simultaneously, we have seen a complex monetary backdrop emerge, marked by diverging paths between emerging and developed markets.

Yet beneath the noise, structural trends began to take hold, chief among them a pronounced loosening of global financial conditions. These developments laid the groundwork for an increasingly constructive environment for emerging market (EM) credit, with strong total returns delivered across most regions and sectors. We believe these trends will remain supportive, reinforcing the case for increased exposure to EM credit in diversified portfolios.

Macro shocks reshape risk appetite

Perhaps the most noteworthy headline event in 2025 came in April. Tensions flared after the US administration announced reciprocal tariffs, effectively igniting a global trade war and resulting in the VIX index, our preferred index of global sentiment, reaching levels not seen since the COVID-19 pandemic.¹

Trade tensions appeared short lived, however, replaced by geopolitical risks in early June as Israel and Iran entered direct military confrontation. While a truce was declared after 12 days of hostilities, uncertainties remain.

Meanwhile, central banks actively recalibrated monetary policy in response to shifting global conditions in growth and inflation. Fourteen out of twenty EM central banks eased monetary policy.¹ China reduced benchmark policy rates to record lows, highlighting its commitment to economic recovery and addressing deflationary pressures. Only two central banks raised rates - Turkey and Brazil. In both cases, the adjustment appeared as result of government interference, putting pressure on their central banks to demonstrate independence and adopt orthodox monetary policy. However, the cost of stabilizing capital flows in the two countries has risen, with real yields nearing 10%.

In developed markets (DM), government bond curves steepened; easing inflation and anchored expectations pushed front-end (2-year) yields lower. However, concerns over fiscal largesse, resulting in fears of surging gross issuance led to a sharp rise in long-end yields, most notably in Europe. While the US 30-year Treasury yield remained stable, German 30-year yields jumped 44bps (basis points). The outperformance of US Treasuries resulted in dollar-denominated corporate credit markets (US and hard-currency EM) to outperform euro-denominated peers.

EM benefits from supportive macro

Episodic event risk aside, the macro backdrop for EM in the first half was supportive for total returns. A key tailwind was the broad-based weakening of the US dollar, which contributed to positive investor sentiment, easing inflationary pressures in EM and boosting global liquidity, which in turn fostered economic growth and improved funding access.

EM growth dynamics also benefited from rising real incomes. Stable food prices and receding overall inflation created room for central banks to become more accommodative, enhancing the outlook for credit. China, a primary EM growth engine, significantly ramped up its fiscal stimulus; in the first 4 months of 2025, government spending reached a decade high. 

A defining feature of the first half, perhaps overshadowed by macroeconomic event risk, was the marked loosening in global financial conditions. We expect this to continue for the rest of the year and reinforces our constructive view on EM credit (Figure 1).

On the basis that diversification is the most logical defence against event risk, we believe EM credit stands out versus other credit asset classes, offering broad exposure across regions, sectors and risk profiles. Combined with a supportive macroeconomic backdrop, diversification created a powerful recipe for robust year-to-date total returns. Most segments of EM hard currency debt delivered returns exceeding 4% (median total 4.22%), as Figure 2 illustrates.

Breaking down total return by their components (price appreciation and coupon income), coupon was the dominant driver. This income-led return profile favours EM credit over DM given higher available coupons. This dynamic also contributed to the broader outperformance of high yield (HY) relative to investment grade (IG) credit.

By region, Latin America outperformed, driven mainly by commodity-linked issuers and quasi-sovereign securities. We believe the region is entering the early stages of a political realignment - marked by a gradual shift from left-leaning governments toward more market-friendly, right-of-centre leadership. The transition began with the election of Javier Milei in Argentina, followed by similar political developments in Ecuador. We anticipate this trend will continue with elections in Chile this year, and in Brazil and Colombia in 2026. We see this evolving political landscape as a positive catalyst for the regional credit market. 

Asia also delivered strong performance, with its HY market driven by gains in Macau gaming and property developers. The IG segment posted its best first half since 2019,² led by strength in the technology sector.

In our view, the key driver behind Asia credit’s momentum is an exceptionally strong technical, with domestic markets offering cheaper funding over international ones. This divergence has been amplified by regional central banks (e.g. China, South Korea, Indonesia, India, the Philippines and Thailand) cutting policy rates, while the US Federal Reserve remained on hold. As a result, there has been a clear shift toward domestic funding, contributing to the continued contraction of the international Asia credit market. Net supply in the first half stood at -US$22 billion.³

EMEA slightly underperformed relative to other regions given the ongoing Russia/Ukraine conflict, heightened Middle East tensions and energy price volatility. However, the primary headwind for the region was the rise in European government bond yields, as 15% of the EMEA credit universe is denominated in euros.

For IG, its OAS remained broadly unchanged, with 98.8% of EMEA issuers generating positive returns.⁴ South African gold miners performed particularly strongly, in-line with rising gold prices, a trend we expect to continue in the second half of the year.

EMEA HY returned 3.98%, outperforming its euro high-yield counterpart.⁵ Key outperforming sectors included homebuilders, which benefited from declining interest rates across Eastern Europe and strong demand from the Middle East, as well as metals and mining, given higher precious metals prices. Looking ahead, the prospect of a regional ceasefire could act as a positive catalyst, with the banking sector potentially offering the most efficient way to express this theme.

Improving fundamentals

From a bottom-up perspective, ratings upgrades continued to outpace downgrades, a clear indication of stable-to-improving corporate balance sheets (Figure 3). Net leverage in IG was stable at 0.9x, significantly lower than its peers in the US (2.8x) and Europe (2.7x). In HY, net leverage edged up slightly to 2.6x, yet remained below the US (3.5x) and Europe (4.7x). The overall 12-month rolling default rate fell to 1.2%, its lowest level since the onset of the pandemic (Figure 4).

Figure 3:  Upgrades outpace downgrades

Source: JP Morgan, Emerging Markets Corporate Strategy, 25th June 2025. For illustrative purposes only.

Figure 4:  Leverage remains low

 

Source: JP Morgan, Emerging Markets Corporate Strategy, 25th June 2025. For illustrative purposes only.

Supportive technicals

From a technical (supply and demand) standpoint, we continue to expect the EM hard currency credit universe to shrink in 2025, driven by a combination of cheaper domestic funding in IG and growing access to private debt funding for HY issuers.

On the demand side, net flows were negative in the first half, suggesting investors remain underweight EM, although inflows turned positive in May and June.⁶ While we do not expect an avalanche of inflows, we anticipate demand will continue to recover. This is underpinned by investors seeking diversification away from US market uncertainty, an ongoing search for yield amid global monetary easing and growing interest in thematic opportunities. These include exposure to precious metals, a possible Ukraine/Russia ceasefire and high-growth segments like artificial intelligence, particularly via EM chip manufacturers. In summary, we believe EM credit is well-positioned to benefit from a potentially prolonged reallocation of investor portfolios, albeit starting from an underweight base.

Compelling valuations

From a valuation perspective, option-adjusted spreads (OAS) are currently at the tighter end of their historical range.⁷ This is not surprising given the supportive macro backdrop and solid bottom-up fundamentals mentioned earlier. 

Assessing valuations on a risk-adjusted basis provides more insightful. The primary risk for credit investors is leverage; higher leverage should mean higher compensation. Based on this metric, we believe EM credit appears compelling. Investors in BB-rated EM securities are currently compensated with 125bps of spread per unit of leverage (Figure 6), highlighting their relative value compared to other markets. For asset allocators, the preference is to review asset classes via their Sharpe ratios over the medium term, where EM credit again scores favourably, reinforcing the case to cover EM underweight exposure.

A constructive outlook

Despite an eventful, and at times turbulent, first half to 2025, the outlook for EM credit remains constructive. The combination of a supportive macroeconomic backdrop, improving corporate fundamentals and strong technical dynamics continues to differentiate the asset class within global credit markets.

Event risk, whether geopolitical or policy-driven, will likely persist. But for investors with a long-term perspective, the case for EM credit is compelling. Diversification benefits, attractive valuations on a risk-adjusted basis and a growing number of idiosyncratic opportunities across regions and sectors all support the argument to close underweight positions.

As global financial conditions ease and EM government policy remain supportive, we believe EM credit is well-positioned to deliver resilient income-driven returns in the second half of 2025. This is particularly meaningful in a world where carry and selectivity are once again critical to portfolio construction.

EM look back – June

Fixed Income

• The difference in eurozone and US data resulted in a divergence in government bond yields with US Treasuries fall while eurozone yields moved higher. As a result, US and EM credit outperformed their euro-denominated counterparts.
• Sovereign debt posted strong performance, led by frontier markets and long-dated securities. Sentiment improved significantly following the announcement of a ceasefire, triggering broad-based spread tightening and boosting high yield (HY). Combined with falling US Treasury yields, the environment was particularly favourable for BB-rated credit - the sweet spot, benefiting from both spread compression and sensitivity to falling government yields.

Past performance is not a reliable indicator of current or future results.

EM Credit

• Regionally Latin America was the top-performer which also outpaced its US peers across HY and IG segments. In IG long-dated Mexican securities were key contributors, while Latin American HY benefited from the tailwind of rising oil prices.
• By sector energy led performance- driven by the rally in oil – closely followed by quasi-sovereigns, which were well-positioned to gain from the decline in US government yields.
• New issuance totalled US$48bn, above last year’s US$32 billion. Issuance was above average in Latin America at US$12 billion due to a Brazilian IG protein business issuing a multi-tranche new deal of US$3.5 billion, a good indication of rising demand for EM credit. Also of note was the US$20 billion of issuance in financials.

Monetary policy

• Hungary’s central bank held its benchmark rate at 6.5% and said it needs to maintain tight monetary policy.
• The Czech National Bank left its base interest rate unchanged at 3.5%
• Mexico’s central bank cut borrowing by 0.5% to 8%, its lowest level since July 2022.
• Brazil’s central bank raised the Selic rate by 25bps to 15%, marking the seventh consecutive hike and 450bps of tightening since last September. With inflation still above target, rates are expected to remain high for an extended period, with gradual cuts likely to commence in early 2026 under a new central bank board

Country-specific news

• In Poland, Prime Minister Donald Tusk's government survived a vote of confidence as he sought to reassert authority after his ally Rafał Trzaskowski lost the June 1 presidential election to nationalist Karol Nawrocki.
• South Africa's annual consumer inflation held steady at 2.8% in May, driven by housing, food and beverages, while Q1 2025 GDP grew 0.1% quarter-on-quarter, supported by agriculture and transport, despite contractions in manufacturing, mining and construction.
• Ukrainian President Zelenskyy had a “productive” meeting with US President Trump. NATO members agreed to a new 5% GDP defence spending target by 2035, while reiterating support for Ukraine.
• Brazilian consumer confidence jumped to 52.1 in June, signalling optimism with one of the largest monthly gains among 30 countries. Ipsos attributed the rise to improved economic predictability, slowing food inflation, and lower 2025 inflation forecasts.
• Chilean communist Jeannette Jara won the left-wing presidential primary but faces a tough general election amid low support for the current government and voter concerns over crime and migration- key issues for the conservative opposition.
• Moody’s and S&P downgraded Colombia’s credit rating due to rising debt and suspension of a fiscal rule; Moody’s cut it to Baa3 (lowest investment grade), while S&P lowered it to BB (junk status).
• China and the US appeared closer to a trade deal, with reports that China agreed to accelerate rare-earth exports to the US, while potentially finalizing a large aircraft order with Airbus (TBD).
• At the ‘Summer Davos’ in Tianjin, Premier Li Qiang unveiled domestic stimulus efforts with 19 new guidelines to boost consumption, focusing on structural reforms and medium-term growth in services.
• Lee Jae Myung won South Korea’s presidential election, following the impeachment of former President Yoon Suk Yeol. Lee's win sparked a stock market rally as his administration aims to boost growth by easing fiscal policy.
• Thailand entered fresh political turmoil after Prime Minister Paetongtarn Shinawatra was suspended. Meanwhile, economic concerns deepened, with Moody’s placing the country’s Baa1 rating on negative outlook and cutting 2025 GDP growth forecast to 2%.

Market Data

Credit

Past performance is not a reliable indicator of current or future results.

Source: ICE data platform. as of 30th June 2025. EMGB - ICE BofA Emerging Markets External Sovereign Index EMCB - ICE BofA Emerging Markets Corporate Plus Index,  EMIB - ICE BofA High Grade Emerging Markets Corporate Plus Index, EMHB - ICE BofA High Yield Emerging Markets Corporate Plus Index, Q690 - ICE BofA Custom Emerging Markets Short Duration Index, EMRA - ICE BofA Asia Emerging Markets Corporate Plus Index, EMIA - ICE BofA High Grade Asia Emerging Markets Corporate Plus Index, EMHA - ICE BofA High Yield Asia Emerging Markets Corporate Plus Index , EMRL - ICE BofA Latin America Emerging Markets Corporate Plus Index, EMIL - The ICE BofA High Grade Latin America Emerging Markets Corporate Index, EMHL - ICE BofA High Yield Latin America Emerging Markets Corporate Plus, EMRE - ICE BofA EMEA Emerging Markets Corporate Plus Index, EMIE - ICE BofA High Grade EMEA Emerging Markets Corporate Plus Index, EMHE - ICE BofA High Yield EMEA Emerging Markets Corporate Plus Index,. Index performance is for illustrative purposes only. You cannot invest directly in the index. Indices selected provide best proxy for highlighting performance of emerging market corporate bonds. For illustrative purposes only.

Yield to Worst

Source: ICE data platform. as of 30th June 2025. EMGB - ICE BofA Emerging Markets External Sovereign Index EMCB - ICE BofA Emerging Markets Corporate Plus Index,  EMIB - ICE BofA High Grade Emerging Markets Corporate Plus Index, EMHB - ICE BofA High Yield Emerging Markets Corporate Plus Index, Q690 - ICE BofA Custom Emerging Markets Short Duration Index, EMRA - ICE BofA Asia Emerging Markets Corporate Plus Index, EMIA - ICE BofA High Grade Asia Emerging Markets Corporate Plus Index, EMHA - ICE BofA High Yield Asia Emerging Markets Corporate Plus Index , EMRL - ICE BofA Latin America Emerging Markets Corporate Plus Index, EMIL - The ICE BofA High Grade Latin America Emerging Markets Corporate Index, EMHL - ICE BofA High Yield Latin America Emerging Markets Corporate Plus, EMRE - ICE BofA EMEA Emerging Markets Corporate Plus Index, EMIE - ICE BofA High Grade EMEA Emerging Markets Corporate Plus Index, EMHE - ICE BofA High Yield EMEA Emerging Markets Corporate Plus Index,. Index performance is for illustrative purposes only. You cannot invest directly in the index. Indices selected provide best proxy for highlighting performance of emerging market corporate bonds. For illustrative purposes only. 

 

References

1. JPMorgan, Global Central Bank Watch, as of 20th June 2025
2. ICE Index Platform, as of 30th June 2025. ICE BofA Asian Dollar Investment Grade Corporate Index , 30TH June 2025.
3. JP Morgan, Emerging Markets Corporate Strategy, as of 25th June 2025
4. ICE Index Platform, as of 30th June 2025. ICE BofA High Grade EMEA Emerging Markets Corporate Plus Index.
5. ICE Index Platform, as of 30th June 2025. ICE BofA High Yield EMEA Emerging Markets Corporate Plus Index.
6. JP Morgan, EM Corporate Weekly Monitor, 27th June 2025
7. ICE Index Platform, as of 30th June 2025. ICE BofA Emerging Market ICE BofA Bond Indices, 30th June 2025.

All sources are Bloomberg unless otherwise stated.

This material is not intended to be relied upon as a forecast, research, or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed by Muzinich & Co. are as of July 2025 and may change without notice.

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Index descriptions

EMGB - ICE BofA Emerging Markets External Sovereign Index tracks the performance of US dollar and euro denominated emerging markets sovereign debt publicly issued in the major domestic and eurobond markets.  Qualifying securities must have risk exposure to countries other than members of the FX-G10, all Western European countries and territories of the US and Western European countries.

EMCB - ICE BofA Emerging Markets Corporate Plus Index tracks the performance of the US dollar and euro denominated emerging markets non-sovereign debt publicly issued in the major domestic and eurobond markets. Qualifying issuers must have risk exposure to countries other than members of the FX G10, all Western European countries, and territories of the US and Western European countries.

EMIB - ICE BofA High Grade Emerging Markets Corporate Plus Index is a subset of the ICE BofA ML Emerging Markets Corporate Plus Index (EMCB) including all securities rated AAA through BBB3, inclusive.

EMHB - ICE BofA High Yield Emerging Markets Corporate Plus Index is a subset of the ICE BofA ML Emerging Markets Corporate Plus Index (EMCB) including all securities rated BB1 or lower.

Q690 - ICE BofA Custom Emerging Markets Short Duration Index tracks the performance of short-term US dollar and euro denominated emerging markets non-sovereign debt publicly issued in the major domestic and eurobond markets.

EMRA - ICE BofA Asia Emerging Markets Corporate Plus Index is the subset of the ICE BofAML Emerging Markets Corporate Plus Index, which includes only securities issued by countries associated with the region of Asia, excluding Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

EMHA – The ICE BofA High Yield Asia Emerging Markets Corporate Plus Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities rated BB1 and lower with a country of risk within the Asia region.

EMIA -  The ICE BofA High Grade Asia Emerging Markets Corporate Plus Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities rated BBB3 and higher with a country of risk within the Asia region.

EMRL - ICE BofA Latin America Emerging Markets Corporate Plus Index is a subset of The ICE BofA Emerging Markets Corporate Plus Index including all securities issued by countries associated with the geographical region of Latin America.

EMIL - The ICE BofA High Grade Latin America Emerging Markets Corporate Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities rated BBB3 and higher with a country of risk within the Latin America region.

EMHL - ICE BofA High Yield Latin America Emerging Markets Corporate Plus is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities rated sub-investment grade based on the average of Moody's, S&P and Fitch, and with a country of risk associated with the geographical region of Latin America.

EMRE - ICE BofA EMEA Emerging Markets Corporate Plus Index is a subset of The ICE BofA Emerging Markets Corporate Plus Index including all securities issued by countries associated with the geographical region of Europe, the Middle East and Africa including Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.

EMIE - ICE BofA High Grade EMEA Emerging Markets Corporate Plus Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities rated BBB3 and higher with a country of risk within the Europe, Middle East and Africa regions.

EMHE - ICE BofA High Yield EMEA Emerging Markets Corporate Plus Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities rated BBB3 and higher with a country of risk within the Europe, Middle East and Africa regions.

The MSCI EM Index is a free-float weighted equity index that captures large and mid cap representation across emerging market countries. The index covers approximately 85% of the free float-adjusted market capitalisation in each country.

LDMP - ICE BofA Local Debt Markets Plus Index is designed to track the performance of emerging markets sovereign debt publicly issued and denominated in the issuer's own currency.

J0A0 - The ICE BofA ML US Cash Pay High Yield Index tracks the performance of US dollar denominated below investment grade corporate debt, currently in a coupon paying period that is publicly issued in the US domestic market.

C0A0 - The ICE BofA ML US Corporate Index tracks the performance of US dollar denominated investment grade corporate debt publicly issued in the US domestic market.

HE00 - The ICE BofA ML Euro High Yield Index tracks the performance of EUR dominated below investment grade corporate debt publicly issued in the euro domestic or eurobond markets.

ER00 – The ICE BofA ML Euro Corporate Index tracks the performance of EUR denominated investment grade corporate debt publicly issued in the eurobond or Euro member domestic markets.

ICE BofA High Yield Emerging Markets Corporate Plus India Issuers Index (EINH) - is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities with India as the country of risk that are rated sub-investment grade based on average of Moody's, S&P and Fitch

ADOL -The ICE BofA Asian Dollar Index tracks the performance of U.S. dollar denominated sovereign, quasi-government, corporate, securitized and collateralized debt publicly issued in the U.S. domestic and eurobond markets by Asian issuers.

ADHY - ICE BofA Asian Dollar High Yield Index tracks the performance of sub-investment grade U.S. dollar denominated sovereign, quasi-government, corporate, securitized and collateralized debt publicly issued in the U.S. domestic and eurobond markets by Asian issuers.

ADIG -  ICE BofA Asian Dollar Investment Grade Index tracks the performance of investment grade U.S. dollar denominated sovereign, quasi-government, corporate, securitized and collateralized debt publicly issued in the U.S. domestic and eurobond markets by Asian issuers. Qualifying securities have a country of risk classified as an Emerging Markets country that is part of the Asia/Pacific Region.

CEMBI Broad Div. Index - The JP Morgan CEMBI Broad Diversified Index (CEMBIB Div) is a benchmark that tracks the performance of US dollar-denominated, fixed and floating-rate debt instruments issued by emerging market corporate entities.

JESG CEMBI Broad Div. Index - The JP Morgan ESG CEMBI Broad Diversified Custom Maturity Index tracks liquid, US Dollar denominated emerging market fixed and floating-rate debt instruments issued by corporates.

EM3B – ICE BofA BB Emerging Markets Corporate Plus Index is a subset of the ICE BofA Emerging Markets Corporate Plus Index including ass securities rated BB1 through BB3, inclusive.

EMCS – ICE BofA Emerging Markets Corporate Plus Consumer Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities of Consumer Cyclical and Consumer Non-Cyclical issuers.

EMEN – ICE BofA Emerging Market Corporate Plus Energy Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities of Energy issuers.

EMRB – ICE BofA Emerging Market Corporate plus Real Estate, Building & Hotels Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities of Real Easte, Building & Construction, or Hotels.

EMCG – ICE BofA Emerging Markets Corporate Plus Capital Goods Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities of Capital Goods Issuers.

EMSD – ICE BofA Emerging Markets Diversified Corporate Index tracks the performance of USD dollar denominated emerging markets corporate senior and secured debt publicly issued in the US domestic and eurobond markets.

EMTM – ICE BofA Emerging Markets Corporate Plus Media & Telecommunications Index is a subset of ICE BofA Emerging Markets Corporate Plus index including all securities of media and telecommunications issuers.

EM2B – ICE BofA BBB Emerging Markets Corporate Plus Index is a subset of the ICE BofA Emerging Market Corporate Plus index including all securities rated BBB1 through BBB3, inclusive.

EMUT – the ICE BofA Emerging Markets Corporate Plus Utility Index is a subset of the ICE BofA Emerging Markets Corporate Plus Index including all securities of Utility issuers.

EMPB – ICE BofA Public Sector Issuers Emerging Markets Corporate Plus Index is a subset of The BofA Emerging Markets Corporate Plus Index including all quasi-government securities as well as debt of corporate issuers deemed to be government owned or controlled.

ACIG – ICE BofA Asian Dollar Investment Grade Corporate Index tracks the performance of investment grade US dollar denominated securities issued by Asian corporate issuers in the US domestic and eurobonds market. Qualyfying securities have a country of risk associated with Bangladesh, Bhutan, Cambodia, China, John Kong, India, Indonesia, Laos, Macau, Malaysia, Mongolia, Myanmar, Nepal, Pakistan, Papua New Guinea, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.

EMAB – Ice BofA Automotive & Basic Industry Emerging Markets Corporate Plus Index is a subset of the ICE BofA Emerging Markets Corporate Plus Index.

EMHE - The ICE BofA High Yield EMEA Emerging Markets Corporate Plus Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities rated BBB3 and higher with a country of risk within the Europe, Middle East and Africa regions.

EMNS – The ICE BofA Non-Financial Emerging Markets Corporate Plus Index is a subset of the ICE BofA Emerging Markets Corporate Plus Index excluding all financial securities as well as debt of corporate issuers designated as government owned or controlled by ICE BofA emerging markets credit research.

EM1B – the ICE BofA AAA-A Emerging Markets Corporate Plus Index is a subset of the ICE BofA Emerging Market Corporate Plus Index including all securities rated AAA through A3, inclusive.

EMFN – EM Corporate Plus Financial is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities of financial issuers.

EMIE - The ICE BofA High Grade EMEA Emerging Markets Corporate Plus Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities rated BBB3 and higher with a country of risk within the Europe, Middle East and Africa regions.

EM4B – ICE BofA B & Lower Emerging Markets Corporate Plus Index is a subset of the ICE BofA Emerging Markets Corporate Plus Index.

EMRT – ICE BofA Emerging Markets Corporate Plus Transportation Index is a subset of ICE BofA Emerging Markets Corporate Plus Index including all securities of Transportation issuers other than airlines or railroads.

You cannot invest directly in an index, which also does not take into account trading commissions or costs. Additionally, indices do not include reinvestment of dividends, and the volatility of indices may be materially different over time.

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