2022 will be an uphill struggle for EM asset returns as growth moderates and the Fed starts hiking. The global expansion is set to continue into 2022 at an above trend pace, including for EM economies. But EM and global growth will slow from the early cycle dynamics of 2021. With the Fed likely to start hiking next year, there is a large hill to climb for EM FX and we continue with our UW  stance there. EM rates have already seen a sizable move  higher this year. Hiking cycles are due to continue into 2022  but given they are relatively advanced we are looking for  entry points to buying EM local bonds, holding a MW  position. For EM sovereigns and corporates, the mid-cycle  environment is not as disruptive even with Fed tightening  and given spread underperformance this year we stay OW  into 2022 seeing some spread tightening in the near-term.