Abstract
Emerging market debt (principally the Brady bond market) warrants consideration in diversified portfolios based upon its normal return potential, risk characteristics and portfolio diversification benefits. While a realistic review of sovereign credit history discloses occasional periods of extreme duress, there are several reasons to be optimistic regarding future credit performance. Foremost is that the Brady plan provided a market response to the debt crisis of the 1980s, and the resulting bond market, in turn, provides constant market feedback on fiscal, monetary and exchange rate policies. Market feedback, combined with a general trend towards more participative government, bodes well for the overall economic development process.
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© 1998 Springer Science+Business Media Dordrecht
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Bernstein, R.J., Penicook, J.A. (1998). Emerging market debt: practical portfolio considerations. In: Levich, R.M. (eds) Emerging Market Capital Flows. The New York University Salomon Center Series on Financial Markets and Institutions, vol 2. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-6197-2_20
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DOI: https://doi.org/10.1007/978-1-4615-6197-2_20
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