As the global economic backdrop continues to improve, is it time to invest in emerging markets.

Under the hood, there are a lot of different dynamics playing out, but the key message I want to leave is that the quality of the earnings is going to be much better in 23.

I'm Allison Nathan and this is exchanges at Coleman Sachs. emerging market stocks and bonds suffered steep losses in 2022, but have started to rebound in recent months.

To help us understand whether that rally can continue and the outlook for emerging market assets this year,

I'm sitting down with Goldman Sachs

Kai Haig and Heerin DeSani from the asset and wealth management business.

Kai is co-cio of fixed income and oversees the emerging markets debt team

and Heerin is the co-head of Emerging Markets Equity.

Hearing Kai, welcome to the program.

Thank you.

Thank you, Allison.

So Emerging Markets certainly did not escape the downturn in markets last year.

They suffered very heavy losses.

There were tons of headwinds.

We had rising rates, a strong US dollar,

lockdowns in China, the war in Ukraine,

the list goes on and on. but this year emerging market assets are

turning in a better performance and in some areas outperformance so what's

deriving this better performance here and maybe you can start us off.

If you think about last year, other than the macro factors

such as US Fed aggressively hiking rates

and the resultant strength of the US dollar, you had two EM specific issues which were impacting the EM

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