Red-hot inflation, aggressive interest rate hikes and a surging US dollar are reminiscent of the early 1980s – a decade that brought a wave of emerging market sovereign debt crises. This year has already witnessed Russia’s first in a century external default, coming hard on the heels of Sri Lanka’s liquidity crisis with its failure to meet its payments on its US dollar bonds. The risk of broader contagion is alarming markets.
In this week’s podcast, Ehsan Khoman, Head of Emerging Markets Research (EMEA), examines the risks across emerging markets and highlights which sovereigns are most susceptible to the current challenging global operating environment.
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