RBC BlueBay strategists outline why EM sovereign performance in 2026 may hinge on countries’ alignment (or non-alignment) with the Trump administration amid rising geopolitical fragmentation.
-
Geopolitical risk is a key differentiator: the US “large-scale strike” in Venezuela underscores escalation and sanctions-tail risks across EM.
-
Latin America shows policy consequences: Colombia briefly faced 25% tariffs, while Brazil was hit with 50% tariffs, highlighting headline-driven volatility.
-
Asia and CEEMEA are increasingly transactional, with trade deals, defence links and funding flows shaping idiosyncratic sovereign outcomes.
Explore the full report for country-by-country flashpoints, scenario drivers and positioning implications.
To read this article, you need a subscription to Investment Officer. If you don't have a subscription yet, click on 'Subscribe' to see the various subscription options.
