Investors in emerging market debt have not had an easy time. Negative US Treasury returns and the impact of a stronger dollar have weighed on the asset class. But LGIM believes 2024 will be the year when emerging market debt comes back onto investors’ radars. Given the firm’s view that we are nearing the peak in US interest rates, it thinks the opportunity to lock in yields – and hence income – at these levels is rare. Thus, receding inflation and favourable emerging market growth prospects, relative to developed market peers, make for an interesting macroeconomic environment.