Pinebridge Sees Emerging-Markets Rally Tilting Toward Bonds

Pinebridge Investments expects the rally in emerging-market assets to tilt toward fixed income next year and away from currencies as the dollar regains strength.

Anders Faergemann, a senior portfolio manager at the firm, expects emerging markets to be “broadly in a good shape” in 2026 with lower volatility than during this year’s breakneck advance. However, he doesn’t expect EM currencies to repeat this year’s performance.