BlackRock and JPMorgan, two of the world’s largest asset managers, are rotating out of US fixed income into emerging market debt, chasing higher real yields. Local emerging market government bonds posted more than 15% returns in 2025, drawing over $60 billion in inflows. BlackRock formalized this position by moving EM local-currency debt to a small overweight in its mid-year outlook in July 2026, while JPMorgan highlights historically elevated real yields in EM local debt. JPMorgan CEO Jamie Dimon, however, warned in April 2026 of a potentially looming bond crisis tied to persistent US deficits and escalating geopolitical concerns.
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