Another year brings another warning about the implications of possible higher interest rates. How seriously should emerging market sovereigns take these cautionary forecasts?
Similar challenges were predicted in 2005, yet in the event interest rates remained stable and low. This, coupled with the fact that last year there were record emerging market inflows ($358 billion according to the Institute of International Finance), suggests that such fears might be overstated.
Global risk appetite and liquidity have been very important to emerging market spread tightening in recent years, with risk appetite stronger than ever.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
