2021 EM equity issuance is tracking for an above-average year following strong trends observed last year despite the markets and economies reeling from the adverse impacts of the pandemic. 2021 annualized equity issuances (IPOs and follow-ons) reached USD277 billion YTD and 2020 topped at USD344bn compared to a 10-year average issuance of USD233 billion / year.

Fundamental catalysts for this trend to sustain are in place: (1) companiesraising funds to finance organic/inorganic expansion or rebalancing following achallenging environment in 2020; (2) stronger equity markets and very strongUS equity capital markets activity; and (3) Emerging Markets governments’need to re-balance fiscal accounts. Key risks to this view include continued USexceptionalism, repricing higher of US treasury yields, and the emergence of acostlier Biden agenda for US equities (US policy making).