Trends in Emerging-Market Sovereign Bonds

Emerging-market sovereign debt constitutes a substantial proportion of the global asset universe, notable for its potential diversification benefit alongside developed-market sovereign bonds. The MSCI Emerging Markets Sovereign Bond Index is linked to USD 1.1 trillion in total notional value — an amount that expanded from heightened bond issuance from countries and regions such as China and the Persian Gulf. With the exception of Turkey, the largest sovereign issuers in the index have maintained a sustainable level of (foreign) government debt to GDP and consequently a typical range of credit spreads.

How countries’ total notional amount and composition have evolved

Chart shows the total notional amount outstanding in USD billions of the MSCI Emerging Markets Sovereign Bond Index over the period of Jan. 1, 2006, to Jan. 2, 2024. Index weight of each country is calculated at the beginning of each year.