Default question hangs over EM after turbulent week

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By Ross Lancaster
27 Mar 2020

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.

After a torrid three weeks of volatility, during which time investors were plagued by outflows and cratering portfolio values, investors did enjoy some respite as EM bonds finally rallied on the back of Wednesday's $2tr US stimulus package.

But the spectre of defaults still hangs over the market. ...

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