Global Emerging Markets Weekly Don’t hyperventilate about hyperscalers

Global Emerging Markets Weekly Don’t hyperventilate about hyperscalers

The View: Don’t hyperventilate about hyperscalers 18 September 2026

The expected surge in hyperscaler, data center, and semiconductor issuance has sparked Emerging Markets Weekly concerns that investor demand could be diverted away from EM credit. Market evidence Global suggests the risk to EM remains limited. – J. Brauer, R. Adlakha, Y. Seliger, L. Martin. Table of Contents Asia Economics: CNY – Xi-Trump summit: The Art of Peace The Trump-Xi summit is expected on Sept 24 in Washington, DC. Our base case is a one- The View 2 year extension of the existing trade truce, which maintains agreed tariff levels and Asia Economics 5 suspends new export controls. – A. Zhu, H. Qiao Asia Strategy 6

Asia Strategy: KRW – From last to pole position EEMEA Economics 8 EEMEA Strategy 10 The Korean won enters 2H26 with significant momentum. Since late July, KRW has LatAm Economics 12 appreciated 13.3% against the US dollar, with USD/KRW falling from above 1,550 earlier LatAm Strategy 14 in the year to the low of 1,334. – C.Piron EEMEA Economics: Kenya: Status quo until the elections Sovereign Strategy 16 Strategy: The Primary Market is Weak 17 Ruto remains the front-runner, but re-election is not assured. Article IV on track to be Credit Risk Premium Model 18 published in December; SLA before elections looks ambitious given Zambian precedent. CTA Monitor in EM 19 We are moving KENINT EXD from UW to MW. –T. Rusike, L. Porte EMFX CTA Positioning 20 EEMEA Strategy: Nigeria: Easing Offers Upside EM Rates CTA Positioning 21 Go long NIGB 31s, FX-unhedged as improving inflation and fiscal expectations create Rules of thumb for front-end trades 22 room for further monetary easing. We expect spot to remain roughly unchanged in line EXD Sentiment Indicator 22 with our forecasts, with the bulk of returns driven by yield compression. – Paja, Adlakha GEMs Macro Tables 23

LatAm Economics: Mexico – IG at stake (Trip notes) EM Alpha Trade Recommendations 26 Research Analysts 30 We met policymakers, analysts and investors: IG at risk in 2-3y absent faster growth or consolidation; we stay UW EXD. Banxico is unlikely to follow the Fed: sub-4% inflation, slack and a strong peso keep it on hold; we favor receiving 2y TIIE. – C. Capistran Jane Brauer LatAm Strategy: Brazil – Make Duration Great Again Sovereign Debt FI Strategist BofAS Despite fiscal and credit stimulus, Lula has not built a comfortable lead. Polls indicate a highly competitive race. Buy NTNF 2037. High real yields, large easing cycle, and David Hauner, CFA >> asymmetric election upside. Maintain OW EXD on valuations. – E. Aguirre, L. Martin Global EM FI/FX Strategist MLI (UK) Sovereign Strategy: The BofA EXD Sentiment Indicator Our new BofA EXD Sentiment Indicator remains bullish, but is no longer flashing an GEMs FI Strategy & Economics outright Buy designation. It combines return, flow and issuance signals to identify BofAS sentiment extremes in EM EXD. - R. Adlakha, D. Hauner, J. Brauer, L. Martin, M Paja See Team Page for List of Analysts

Week ahead: Monetary policy meeting in China, Hungary, Morocco and Nigeria CTA Monitor: Mixed EM rates. Long Asia FX, mixed EEMEA, short LatAm FX.

See pages 24-28 for a list of our Trading ideas and investment strategies discussed herein may give rise to significant risk and are open trades as well as those closed not suitable for all investors. Investors should have experience in relevant markets and the financial over the past 12 months resources to absorb any losses arising from applying these ideas or strategies. >> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst See a list of common abbreviations under the FINRA rules. Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take toward the end of this report. responsibility for the information herein in particular jurisdictions. BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.…