Emerging Market debt is closing the decade on a strong footing. With double-digit total returns and below-average volatility, investors have enjoyed a solid performance this year, prompting capital to flood back into the asset class after a difficult 2018.

Of course, this has come against the backdrop of an uneasy balancing act between loosening global liquidity and a synchronised growth slowdown. Indeed, the divergent narrative between strong markets and weak fundamental data has caused some to question the durability of this year’s risk asset rally.

There have been few places to hide this year from the swoon in economic activity, either in industrialised nations or in the developing world. In the US, consumers remain confident, buoyed by low interest rates, rising incomes and a vibrant labour market. At the same time, trade uncertainty has weighed heavily on business sentiment, exports and investment.