Financing conditions tightened in emerging markets in recent months, mostly due to the rising benchmark yields. Overall, funding costs have risen toward pre-pandemic levels. In EMEA and Latin America, central banks have been working on rate normalization, pushing up the benchmark yields. In Asia, we see the opposite. While the benchmark yields have been stable because central banks are not yet tightening, emerging market Asia spreads have widened, particularly in the high-yield space, pushing overall funding costs up.