Bonds in euros have traditionally been rare from emerging market issuers. Few borrowers have a direct need for the currency and if they want to swap to dollars, they have been penalised by having to pay a large euro-dollar basis swap - though this disadvantage has halved in the past year from a drag of about 50bp to more like 25bp.
Euro bonds typically account for around only 10% of EM international bond volumes each year, and some say this year is unlikely to be any different. Bankers point out that most EM bond indices, which investors use as benchmarks for performance, are in dollars. Investors see themselves as paid to analyse credit and are loath to take on currency risk as well.
Some investors could buy bonds in euros and hedge the currency risk, but they would want to be paid for it.
Another hurdle is that the euro is conventionally a market for high grade issuers only, as the investors are more conservative than in dollars. But the growing appetite in recent years for EM risks shown by generalist investors, as opposed to EM specialists, in the dollar market could spread to euro buyers.
The two markets do seem to be converging somewhat. For issuers with both euro and dollar deals outstanding, when the current euro secondary trading levels are swapped to dollars, for many they are only around 10bp-15bp wider than dollar levels.
When you add in the recent divergence in new issue premiums - caused by the stress in US debt markets as the Federal Reserve inches towards slowing its quantitative easing - the dollar's competitive edge dwindles to very little at all.
To judge by recent European high grade, non-emerging market issues, a well received deal can get away in euros with a concession of about 15bp, while in dollars 20bp has been a more typical figure.
Naysayers disagree, saying euro buyers would demand bigger pick-ups from emerging issuers.
As things stand today, the sceptics probably still have it. Diversifying your investor base remains a good reason for issuing in a variety of currencies - and can be worth paying for. But on a pure cost basis, there is no compelling rationale for an explosion of euro deals from emerging market issuers.
But things are changing fast. For the first time for the best part of a decade, interest rates in the US and Europe are moving in different directions.
The differences in bond volatility that will result have only just started to show. But on Friday, emerging market dollar bonds moved wider after the US non-farm payroll figures pointed towards a US recovery, and hence to an accelerated end to quantitative easing. EM bonds in euros - where European Central Bank president Mario Draghi had uttered soothing words on Wednesday - barely budged.
With a few more jolts of Treasury volatility, euros could start to excel. If the pricing makes sense, it could provide a rare opportunity for EM issuers that have been eyeing the euro market to jump in and market themselves to euro buyers. It would also give euro investors a chance to diversify their portfolios and develop their own market.