Emerging market debt resilience and diversification trend

EM debt sees record inflows ($214B YTD) and issuance ($187B) despite war, tariffs, AI volatility. Local currency markets ($13T) dwarf hard currency ($1.4T). Record foreign bond sales across Asia-Pacific (kangaroo, panda, dim sum) signal structural shift away from dollar. 'Valley of tears' narrative over. Diversification from US assets is a lasting trend.