According to CoinMeta, the closure of the Strait of Hormuz has led to emerging market companies outperforming their U.S. counterparts in terms of debt performance. The average borrowing cost for emerging market companies has dropped to its lowest level relative to U.S. enterprises since January, as global bond investors have diversified their investments into high-yield assets, driving this sector to outperform. This divergence in trends has pushed the yield premium of emerging market corporate bonds over U.S. corporate bonds to its lowest level since January 26th. Alan Shaw from ninety one stated that the outstanding performance of emerging market corporate bonds is mainly driven by three factors: oil companies that have helped fill the supply gap caused by conflicts in the Middle East, technical factors related to duration, and the diversion of funds into high-yield varieties. Shaw noted that this asset class is still underweight, and the outstanding performance since the beginning of the year, along with its attractive relative risk-adjusted returns, presents an interesting opportunity for asset allocators.