Emerging Market (EM) equities tend to move in ‘super cycles’, extended periods of outperformance or underperformance relative to Developed Markets (DM). The last EM upcycle began in the late 1990s, following the Asian debt crisis, and lasted until the early 2010s. This was succeeded by nearly 15 years of EM underperformance. However, with EM equities now outperforming DM for the second consecutive year, investors are increasingly questioning whether we are entering a new super cycle. We examine the underlying drivers and find compelling reasons to believe so.

High‑yield (HY) issuers - companies rated below investment grade - operate with higher perceived credit risk and generally provide less consistent public disclosure than their investment‑grade (IG) counterparts. In ESG analysis, this discrepancy is especially pronounced. While IG companies typically publish detailed sustainability metrics and governance structures, HY issuers often disclose only the minimum required by regulation.

After several years defined by disruption, windfall profits and extreme volatility, the container shipping industry is entering a more familiar, and more challenging, phase of the cycle. For investors, the next 24 months are shaping up as a period where fundamentals matter again: supply-demand balance, pricing power, cost discipline and balance sheet strength. This transition has important implications not only for freight markets, but also for the credit quality of the world’s largest shipping operators.