EM Corporate Demand Technicals: Where in the world did MidEast corporate bonds go?

Research evidence excerpt

EM Corporate Demand Technicals: Where in the world did MidEast corporate bonds go?

J P M O R G A N Global Credit Research

23 July 2026

EM Corporate Demand Technicals

Where in the world did MidEast corporate bonds go?

Emerging Markets Corporate

Strategy

Alisa Meyers AC

(1-212) 834-9151

alisa.meyers@jpmorgan.com

• MidEast corporate technicals are anchored by UWs among EM dedicated Yang-Myung Hong

investors, steady local investor bid, and the region’s role as a potential (1-212) 834-4274

ym.hong@jpmorgan.com

diversifier for crossover investors. J.P. Morgan Securities LLC

• While we find that investors have overall added exposure selectively, for

those that are more cautious about the length or severity of the current

Middle East conflict, details in this report could be helpful in spotting

potential pockets where exposure may have become higher on a ticker,

country, or sector basis.

• Our fund holding study shows that the increase in public fund allocations

to MidEast corporates has been largely new-issue driven, rather than

evidence of a broad-based secondary-market bid.

• Dedicated EM investors are likely still UW. Our pre-conflict technicals study

showed EM dedicated investors were materially UW, and recent investor

conversations suggest the resilience of the region has left some accounts

looking to top up positions. But the gap between holdings growth and market-

size growth suggests dedicated investors have not yet covered the gap.

• Non EM IG-focused investors saw the most additions to MidEast

corporates, helped by $36bn of MidEast corporate gross new issuance

volumes (more than $30bn of which was IG-rated).

• EM dedicated and HY-focused investors reduced MidEast allocations,

largely due to non-conflict specific factors. EM dedicated selling was