Emerging Market Debt Issuance Hits Record High in January

January saw a record issuance of sovereign debt from emerging markets, led by countries like Saudi Arabia, Mexico, and Hungary. However, this surge contrasts with stagnant flows into dedicated emerging market debt funds. Year-to-date, investors pulled about $1.6 billion out of dedicated emerging market hard-currency funds, according to Morgan Stanley data. That follows outflows of around $80 billion in 2022 and around half of that again last year.