Perspectives

The Case for Emerging Market Debt

Most of us realize that over the last decade the roles of advanced economies (AEs) and emerging markets (EMs) have been reversed, but few of us have changed the structure of our portfolios to reflect this reversal. In the past, foreign-currency debt constituted a large part of the external liabilities of EMs. Today, however, foreign […]

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World Economic Outlook

In the June update of its Economic Outlook, the IMF confirms the slowdown in the world’s economies, from 5.1% growth in 2010 to 4.3% in 2011.  Developing Countries, with 6.6% growth, continued to outpace the 2.2% growth of Advanced Economies. This slowdown is occurring in all regions except Sub-Sahara Africa where growth is expected to […]

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Floating Rate Debt: A Distinct Asset Class

Not only has the corporate landscape undergone a notable and dramatic improvement since the bottom of the financial crisis, but the high expectation of corporate default that accompanied the crisis proved to be wildly overestimated. Instead of the anticipated rate of 25%, actual default rates were closer, in fact, to 11%, and today they stand […]

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Frontier Markets

“Frontier Markets” is an economic term coined by IFC’s Farida Khambata in 1992.  It is used to describe a subset of very small emerging markets.  They have lower market capitalization and less liquidity than more developed emerging markets. The IFC’s definition of frontier markets is wider than that of the index providers.  IFC’s strategic priorities […]

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Advisor versus Advisee

Haven’t we all wondered about the usefulness of expert advice? How often do advisees implement the advice they receive?  Why do advisees pay substantial fees to their advisors, only to ignore such advice and do exactly what they wanted to do in the first place? The following quotes may interest or, at least, amuse you: […]

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