The report, which was prepared by Geneva-based Pictet and Cie of Pictet Group, said the crises helped emerging economies improve their financial markets.

The report said: "Emerging debt markets were hit by the liquidity squeeze as spreads over the United States treasuries ballooned from under 300 base points (bps) in June 2008 to 900bps four months later.

"Spreads have since narrowed to below 400bps as the global risk environment has improved.

"We believe the investment case for emerging markets-US dollar debt remains sound and the asset class still offers value."

It said the believe that the only thing to rise during bear the market was the correlation between asset classes has been clearly demonstrated over the past 12 months.

"Emerging market assets took the full brunt of the liquidity shrinkage that accompanied the worldwide flight to safety, which saw a broad retreat from all asset classes perceived to be risky.

"The Swiss bank UBS estimates that around $500 billion (Dh1.8 trillion) of capital left emerging economies between September 2008 to March 2009, amounting to half the net inflows of the previous five and a half years," said the report, called Hard Currency Emerging Market Debt – Tested in the Crisis.

However, the tide seems to have turned as investors' risk appetite has recovered and inflows in the first half of 2009 have focused on US dollar denominated for emerging markets funds.

According to figures released by HSBC, the last week of July alone saw inflows totalling $462 million into emerging market bond funds, while JP Morgan report said emerging market-US dollar debt markets have risen by 20 per cent over the first six months of the year, compared to a return of minus four per cent from US Government bonds.

The report said: "The recent crisis has highlighted the interdependence of developed and emerging nations in a globalised economy. At the G20 gathering in April, members provided the much needed support to emerging markets through an increase in IMF resources from $250bn to up to $1trn in new funds and access to Special Drawing Rights (SDRs).

"The announcement of these funds, equal to almost four times the market value of the emerging markets US dollar debt index, has sent a clear message to investors: developed nations and multilateral organisations consider emerging markets crucial to the health of the global economy."