Emerging-market companies see lowest borrowing costs since January

Emerging-market corporate debt just became the cheapest it’s been in months. Borrowing costs for companies in developing economies have fallen to their lowest level since January, as global fixed-income investors rotate into higher-yielding assets.

The yield chase is real

The Corporate Emerging Market Bond Index (CEMBI BD), one of the key benchmarks for this asset class, has shown yields ranging between 5.5% and 7.3% during the first quarter of the year. Those numbers reflect meaningful spread tightening, which is a fancy way of saying the gap between what EM companies pay to borrow and what US Treasuries yield has been shrinking.

EM high-yield corporates delivered returns of approximately 13% in 2025, with default rates staying relatively low.

Broader EM debt indicators, including both the CEMBI and the Emerging Market Bond Index (EMBI), have reflected yields in the mid-single to low-double digits.