Emerging-market carry trades up 1.3% in 2026 after a 18% surge in 2023

On January 26, 2026, investors favored emerging‑market carry trades, which are up 1.3% year to date after a 2023 gain of 18%. According to Bloomberg, the index tracking eight markets stands above 291 and is within 5% of its 2011 high, while major banks see continued upside but caution that volatility and geopolitics could interrupt the trend.