Emerging markets are constrained by a number of factors. The U.S.’s rapidly increasing interest rates are putting pressure on emerging market sovereign bonds. While seasoned investors in emerging markets are no stranger to volatility; these days it is coming from too many angles. War in Ukraine, political instability, oil prices, continuing covid-19 related problems, and currency pressures are all coming at once. This has caused a $52 billion dollar to pull according to JPMorgan. All of these pressures increase the spread in yields for emerging market bonds, and the rapid ballooning of these yields has sent their prices off a cliff. Many emerging markets are also facing real fiscal problems. However, there are resilient larger EM economies that can take the brunt of the shocks.

Finsum: If the global economy slows it could be detrimental to EM which can be export-dependent in an already volatile time.