Although confidence in emerging markets debt may have taken a hit lately, fundamentals for a number of developing economies remain favourable. Vulnerabilities to political risks or higher U.S. interest rates may not be as widespread as is sometimes assumed. Synchronized global growth continues, albeit at a more moderate pace than last year, and should be broadly supportive. Commodities prices are stable and appear reasonably valued. Policymaking by central banks in many developing nations is closely tied to growth and inflation in those respective domestic economies. With U.S. high-yield markets at their tightest spreads in more than a decade, emerging markets debt could be an attractive alternative for investors to consider: The asset class has offered comparable income with modestly better equity diversification potential.