JPM EM Corporate Strategy Daily

Research evidence excerpt

JPM EM Corporate Strategy Daily

J P M O R G A N Global Credit Research

24 June 2026

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

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

less compelling at the single-A and above tier, as well as BB and below, where a Yang-Myung Hong AC

fair number of EM corporates are trading through the DM EUR curve. While last (1-212) 834-4274

year’s robust performance was partially underpinned by a USD debasement trend, ym.hong@jpmorgan.com

this year’s strength reflects a more constructive macro backdrop — buoyant risk J.P. Morgan Securities LLC

appetite, ample liquidity, and tight hard currency spreads — with investors actively Alisa Meyers

seeking diversification despite Iran conflict-related uncertainties. (1-212) 834-9151

alisa.meyers@jpmorgan.com

J.P. Morgan Securities LLC

Record EUR EM corporate issuance is expanding the opportunity set. Primary Dhawal U Mehta

volumes in EUR-denominated EM corporate bonds are running at record levels (91-22) 6157 3779

YTD, with EUR issuance representing approximately 15% of total hard currency dhawal.mehta@jpmchase.com

EM corporate supply — the highest share in the post-GFC era. The EUR EM J.P. Morgan India Private Limited

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. Our fund holding data shows that European IG crossover

investors have been gradually increasing their EM corporate allocations, a trend

not observed among other crossover investor segments, reflecting the growing

relevance of EUR EM corporates within European credit portfolios. Technical