Default question hangs over EM after turbulent week

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Default question hangs over EM after turbulent week

Ecuador coronavirus Latin America from PA 27Mar20 575x375
26 March 2020, Ecuador, Quito: Homeless people wait in El Arbolito Park for help from the authorities during the coronavirus (COVID-19) crisis. Photo: Juan Diego Montenegro/dpa | Juan Diego Montenegro/DPA/PA Images

Despite a late rally in emerging market assets this week, which even included a three times oversubscribed issue from Panama, the risk of sovereign bond defaults is still hanging over the asset class.

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