Sounds oh so familiar, '97 all over again?
http://www.telegraph.co.uk/finance/...merging-market-maelstrom-as-Fed-tightens.html
http://www.telegraph.co.uk/finance/...merging-market-maelstrom-as-Fed-tightens.html
Emerging Markets USD Debt
- Thread starter justrading
- Start date
Seems at least for a year or so now euro deominated debt has surged , "reverse yankee bonds".
2.8 trillion offshore euro liabilities. Maybe euro / local currencies spread, or currency risk,
will not be as extreme as USD/local currency spread which in some cases appear to be increasing rapidly.
Incidentally, the 2nd Kyle Bass interview posted in the ACD thread focused on this issue and that was some time ago.
Tick , tick....?
My question is.....will these defaulting EM corporations be handled by governments and CB's
behind the scenes or not. Are bankruptcies allowed ?
2.8 trillion offshore euro liabilities. Maybe euro / local currencies spread, or currency risk,
will not be as extreme as USD/local currency spread which in some cases appear to be increasing rapidly.
Incidentally, the 2nd Kyle Bass interview posted in the ACD thread focused on this issue and that was some time ago.
Tick , tick....?
My question is.....will these defaulting EM corporations be handled by governments and CB's
behind the scenes or not. Are bankruptcies allowed ?
It feels like 1997 don't it, the waves of uncertainty plus indicators warning us there's another Big Thump coming down the road!
Brazil looks like a complete mess, from the chart in the article and everything else going wrong there.