Emerging-market companies see lowest borrowing costs since January

Emerging-market corporate debt just became the cheapest it’s been in months. Borrowing costs for companies in developing economies have fallen to their lowest level since January, as global fixed-income investors rotate into higher-yielding assets. The yield chase is real The Corporate Emerging Market Bond Index (CEMBI BD), one of the key benchmarks for this asset class, has shown yields ranging between 5.5% and 7.3% during the first quarter of the year. Those numbers reflect meaningful spread tightening, which is a fancy way of saying the gap between what EM companies pay to borrow and what US Treasuries yield has been shrinking. EM high-yield corporates delivered returns of approximately 13% in 2025, with default rates staying relatively low. Broader EM debt indicators, including both the CEMBI and the Emerging Market Bond Index (EMBI), have reflected yields in the mid-single to low-double digits. Why EM debt keeps winning the allocation game Cash inflows into EM corporate debt are being driven more by the structural appeal of the asset class than by enthusiasm for specific issuers. The demand appears spread across regions and industries, suggesting that investors view EM corpora...