EM issues SOS as market flounders in perfect storm

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By Oliver West, Ross Lancaster
19 Mar 2020

A broken bond market is incapable of providing emerging markets issuers with funding as the financial effects of the coronavirus pandemic and the oil crash run riot. Official institutions’ support is needed, after the asset class took a brutal beating this week, write Ross Lancaster and Oliver West.

Emerging markets have been attacked on all fronts. The uncertainty created by Covid-19, a volatile oil price that touched as low as $25 a barrel this week, and the dollar strengthening on its scarcity, combined to create chaos in capital markets and plunged recently favoured bonds into semi-distressed ...

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