Emerging Market Debt - tested in the crisis
| 09 June 2008 |
| The investment case still stands The financial and economic crisis of 2008-9 has proved a rigorous trial for emerging economies and their financial markets. The argument that internal political, economic and market reforms, allied with a secular growth story, would enable them to escape the malaise affecting the developed world has been sorely tested. |
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Emerging debt markets were particularly hit by the liquidity dégringolade as investment spreads over US treasuries ballooned from under 300bps in June 2008 to 900bps four months later. The recent evidence of economic stabilisation in developed economies has triggered a strong rally, sending spreads back to the 450bps region. How does the investment case stand up now and what value is offered by markets? (...) - continue in PDF download |
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