Emerging Markets

Read these first

1. 01Original Sin and Currency Mismatch

   Many emerging-market governments and companies can't borrow long-term in their own currency, so they borrow in dollars instead, a fix that trades away currency risk on the debt for currency risk on the borrower, which is exactly the trap that turns an ordinary devaluation into a debt crisis.

2. 02Local Currency vs Hard Currency Sovereign Debt

   An emerging-market government can borrow in its own currency, which it can inflate or devalue away, or in dollars, which it can't print, the choice moves the same risk between the lender and the borrower, and never actually makes it disappear.

3. 03Sudden Stops and Capital Flight

   A sudden stop is what happens when foreign capital that had been flowing steadily into a country simply stops arriving, almost overnight, and because many emerging economies rely on that inflow just to fund everyday imports, the stop alone can trigger a crisis even if nothing else changed.

Then the rest

1. 04Capital Account Liberalization Sequencing
2. 05Commodity Dependence and Terms-of-Trade Shocks
3. 06EM Index Inclusion and Flow Impact
4. 07EM Inflation Targeting and Central Bank Credibility
5. 08EM Sovereign Spreads and the EMBI
6. 09GBI-EM Local Bond Index Mechanics
7. 10IMF Programs and Conditionality
8. 11Index Provider Market Classification
9. 12Onshore vs Offshore Currency Markets
10. 13Parallel Exchange Rates and Multiple Currency Practices
11. 14Political Risk and Election Cycles
12. 15Sovereign Default and Restructuring Mechanics
13. 16Inflow Taxes and Capital Flow Management Measures