At the recent Emerging Markets Traders Association (EMTA) Annual Meeting, Citi analysts highlighted a preference for emerging market (EM) credit over local assets, amid a challenging global macroeconomic environment. The consensus among panelists was cautious on EM local currencies, particularly EMFX, due to anticipated narrow, China-focused tariffs and a stronger U.S. dollar. "EM credit was the clear favorite," Citi noted, with a focus on both distressed and higher-quality names. The meeting also revealed a wide range of expectations for the Federal Reserve's rate cuts in 2025, with forecasts spanning a 125 basis point range. Despite the uncertainty, the consensus expects U.S. real GDP growth to exceed 2%, with continued USD strength. Panelists suggested trades such as buying Argentina and Egypt credit, and paying Brazil DI, reflecting a strategic tilt towards credit opportunities in the EM space.