While many EMs were ahead of the curve during the most recent hiking cycle, policy is diverging more as global rates are on their way down Broadly speaking, EMs should benefit in a global easing cycle — as financial conditions loosen, capital starts to flow back to their economies and pressure on their currencies decreases However, Fathom expects US rates to come down only gradually, meaning fewer of the typical easing-cycle benefits and more build-up of sovereign risks, as higher-for-longer