Returns on US dollar denominated emerging market (EM) bonds have outstripped developed nation peers so far this year, as confidence in the region has returned after market volatility in late 2015.

Since January 2016, dollar denominated EM sovereigns and corporates have returned 4.3% and 3.2% respectively, according to Markit’s iBoxx indices. The returns surpass those of developed markets, beating US treasuries (2.7%), German bunds (3.6%) and US investment grade bonds (2.9%).