Since the beginning of 2020, the COVID-19 pandemic has affected economies and markets across the globe. In both developed and emerging countries, we saw GDP growth rates plummet in early 2020 and fiscal deficits surged. How did governments in emerging market economies respond and how did this response affect their sovereign credit risk? We analyzed the relationship between the yields in the emerging markets sovereign USD-denominated debt space and the fundamental concepts that we believe drive the sovereign credit risk premia.