At the beginning of the century one of the big trends in emerging markets was the amount of interest in the asset class from crossover investors. These global funds and accounts had traditionally focused on the debt of G7 borrowers but turned to riskier assets in a search for higher yield. They became the dominant investor base in hard-currency emerging market debt.
Ten years on, with western Europe and the US facing severe fiscal and debt crises, the reverse is happening. Emerging markets investors are increasingly looking to buy debt issued from stressed developed world borrowers such as Greece. So far, according to market participants, the amounts being invested...
