Dollar bonds from some of the world’s weakest economies have emerged as the bright spot in what’s otherwise been yet another lackluster year for emerging-market assets.
While many developing-world assets ended the year with gains, their returns pale in comparison to those on Wall Street. Among emerging currencies tracked by Bloomberg, only three have managed to strengthen in the face of a rising US dollar. The Brazilian real sank 21%, while the Mexican peso posted its worst year since the 2008 global financial crisis.