MFS' Fixed Income Team

Emerging Market Debt: Revisiting the Trouble Spots

Date:

Emerging Market Debt: Revisiting the Trouble Spots
Robert M. Hall, Institutional Fixed Income Portfolio Manager. Los “Tres Terribles”: revisitando la situación de los focos más problemáticos para los mercados de deuda emergente

Author: Fórmate a Fondo

  1. Treasury yields are likely to rise, creating a headwind for EM debt and other bond sectors
  2. Earlier this year, MFS singled out Venezuela, Argentina and Ukraine, which they called the Terrible Three
  3. In the absence of any policy improvements, Venezuelan debt dynamics are ultimately unsustainable
  4. One bright spot in Argentina is the prospect for a more market-friendly regime following next year’s election
  5. For now, Russian sovereign credit metrics remain quite strong
  6. EM currencies may have the highest beta to possible global financial turmoil