The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

The two sides of emerging markets

Some emerging markets have found the route to salvation, others are a whisker from damnation. By Michael Peterson

Investors who owned single-B Ecuador bonds and double-B Mexico debt at the beginning of 1999 might have been forgiven for thinking that their holdings were in the same asset class. But these two Latin American countries have taken very different paths since then. While Ecuador left investors shell-shocked by becoming the First country in 50 years to default on its international bond obligations, Mexico has become one of the stars of the emerging markets.


       

Even before Moody's upgraded Mexico to investment grade in March this year, the country was borrowing like a member of the world's developed elite. Earlier that month the country issued a e1 billion 10-year bond priced at 210 basis points over German government bonds. Not a bad spread for a country that suffered a devastating currency and banking crisis only six years ago.


In some ways, Poland's transformation has been even more dramatic.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree