Milestones and pivotal turning points are easy to spot – at least in retrospect. Last month, a little-publicized event took place in the emerging markets that few participants ever dreamed possible. For the first time, the JPMorgan EMBI Plus index traded at a spread to duration-matched US treasuries that was below 200 basis points.
Never – not since the EMBI was created in the 1990s, not since the term “emerging markets” entered the financial lexicon in the 1980s, nor even since the birth of floating...
