Trip to an emerging markets fixed income conference in London 2026

Portfolio Managers from the Emerging Markets Fixed Income team visited London in September 2026 to attend a conference about the asset class that brought together issuers, policymakers and investors from around the globe. They share their views on selected countries based on meetings and discussions held during the trip.

A recurring topic during our meetings was the benefit of successfully executing new economic policies. The implementation of more flexible exchange rates in the case of countries such as Egypt, Nigeria and Uzbekistan was welcomed by policymakers and investors alike. Countries that have learned from the previous crisis and implemented better policies, such as cutting inefficient subsidies or preventing speculation on limited resources, have seen their population benefit heavily from these changes. Sri Lanka, Pakistan and Bangladesh have been better able to cope with the rise in market prices of essential energy imports than many within or outside these countries expected. Angola, Argentina and Nigeria are all profiting from a combination of better policies and strong external support in the form of investment cash flows and higher export receipts.

Angola

Angola belongs to the group of countries clearly benefitting from the current geopolitical situation. With oil as its main export, Angola is seeing rising export receipts and the resulting benefits are clearly visible from a market perspective; credit quality is clearly improving, foreign exchange pressures are abating and there is more space for a policy agenda that could benefit society more widely. The diversification of the economy continues to be a high priority and the current economic environment gives Angola the means to cope with change more effectively. Growth momentum remains positive and it is forecast to reach 4.2% for 2026. The country is attracting more interest from foreign investors in terms of direct investments and portfolio investments. Logistics and infrastructure are focus areas both for policymakers and foreign investors.

Egypt

Egypt has turned a corner in several ways in recent years. Since facing an extreme flight of foreign capital during the crisis of 2022 and 2023, the country has managed to develop its economic policy mix. Foreign investors have found their way back and when the Middle East crisis began to escalate earlier this year, many believed there was a high risk of another balance-of-payments event. Through tight and determined policy coordination, Egypt managed to absorb the sudden shock, and foreign investors have voted with their portfolios – meaning a large-scale withdrawal of foreign capital was avoided. Inflation has been trending lower, especially thanks to the easing of food prices. The more flexible strategy that was adopted regarding the foreign exchange market has worked as a shock absorber and partly shielded the economy.

Bangladesh, Pakistan, Sri Lanka

Bangladesh, Pakistan and Sri Lanka share many attributes beyond their geographical proximity. All three economies have been struggling with their own specific types of economic and financial challenges in the last few years. What is also similar is their high dependence on imported energy and their relatively small buffers as they entered the current environment of high energy prices. All three countries also occupy their own distinct position on the geopolitical stage, which Pakistan in particular has managed to turn into a marginal advantage.. Sri Lanka has navigated the geopolitical storm with stoicism and a “cool head”, gaining marginal advantages as well. In the case of Bangladesh, a change in administration has attracted the attention of foreign bond investors. The new administration is now looking to mobilize financing from outside the country to help it fulfil its ambitious growth targets.