EM Corporate € Bonds: Record bond stock and pick-up remaining in BBBs for € based investors

Research evidence excerpt

EM Corporate € Bonds: Record bond stock and pick-up remaining in BBBs for € based investors

J P M O R G A N Global Credit Research

22 June 2026

EM Corporate € Bonds

Record bond stock and pick-up remaining in BBBs for €

based investors

• Euro-denominated EM corporates continue to perform well, with select Emerging Markets Corporate

BBB-rated EM names still offering ~50bp pick-up to DM BBB EUR Strategy

credit. RV is less compelling at the single-A and above tier, as well as BB and Alisa Meyers AC

below, where a fair number of EM corporates are trading through the DM EUR (1-212) 834-9151

curve. alisa.meyers@jpmorgan.com

Yang-Myung Hong

• 2025 strength supported by debasement; 2026 rally more broadly based. (1-212) 834-4274

While last year’s robust performance was partially underpinned by a USD ym.hong@jpmorgan.com

debasement trend, this year’s strength reflects a more constructive macro J.P. Morgan Securities LLC

backdrop — buoyant risk appetite, ample liquidity, and tight hard currency

spreads — with investors actively seeking diversification despite Iran conflict-

related uncertainties.

• Record EUR EM corporate issuance expanding the opportunity set.

Primary volumes in EUR-denominated EM corporate bonds are running at

record levels YTD, with EUR issuance representing approximately 15% of

total hard currency EM corporate supply — the highest share in the post-GFC

era. The EUR EM corporate bond stock has reached a fresh high of US$

equivalent $268bn, even as the broader EM corporate hard currency universe

remains slightly below its 2021 peak of $2.68trn.

• European IG crossover investors increasing EM corporate allocations.

Fund holding data shows that European IG crossover investors have been

gradually increasing their EM corporate allocations, a trend not observed