Perspectives @fr

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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Double, Double Toil and Trouble Fire Burn and Cauldron Bubble

The following summarizes the IMF’s view on capital flows into developing countries.[1] Developed country sovereigns have experienced 25 downgrades since early 2008, while emerging market sovereigns have seen 21 upgrades during 2010.  The following chart[2] illustrates the diverging trends between developed and developing markets. As a result, we have seen strong capital inflows to emerging […]

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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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