Monetary Matters with Jack Farley Why Emerging Markets are Finally Outperforming Developed Markets | Robert Koenigsberger | Gramercy
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Apr 7, 2026 Robert Koenigsberger, founder and CIO of Gramercy with decades in emerging markets debt and restructurings. He discusses why emerging markets are finally outperforming developed peers. Short, punchy takes on how EM central banks moved faster, the power of EM private credit with senior secured structures, index construction pitfalls, and asymmetric China property opportunities.
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EM Private Credit Is Structurally Healthier Than DM's
- Developed market private credit faces liquidity mismatch and weakened standards from mass growth; EM private credit remains more disciplined.
- EM is structurally like DM 15 years ago: senior secured, dollar, institutional-lockup funds avoiding retail liquidity promises.
Fill Bank Gaps By Lending Dollar Secured Loans
- Lend where banks won't by taking dollar-denominated, asset-backed positions with strong governance covenants.
- Example: after Turkey's 2018 lira crisis Gramercy lent against pledged assets at double-digit dollar rates to firms blocked from dollar lending by banks.
Indexing Has Damaged EM Alpha Opportunities
- Many investors mistake beta exposure for alpha and rely on index weights instead of underwriting.
- Koenigsberger calls index-driven buying negligent because it forces ownership of low-conviction, high-risk issuers like Argentina or Russia historically.