Abstract
Welcome to the latest edition of the Exotix Capital Developing Markets Guide. This is the sixth edition, the previous one having been published in February 2011, when the concept of investing in frontier economies was beginning to gain traction again after being derailed by the GFC. A lot has happened since then.
The evolution of the frontier/EM fixed income landscape over the past decade or so has been characterised by two features. First, significantly more hard currency (eurobond) issuance, albeit mainly from sovereigns (developing market corporate issuance has generally lagged). Second, continuing sovereign defaults. Looking at the recent history of these sovereign defaults, we highlight what we think are three interesting characteristics of the recent sovereign debt restructuring experience. These are: (1) proactive creditor committees; (2) bondholders have generally done well in recent restructurings; and (3) a decline in exit yields.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
We don’t define “frontiers” in a strict sense, but such markets tend to share characteristics of illiquidity in securities trading, lack of market depth, under-developed capital markets, and weaker policy making frameworks and institutional governance than more mainstream EMs.
- 2.
Our focus here is sovereign hard currency debt. We exclude corporate bond issuance and domestic debt (local currency) markets, where similar drivers apply and similar trends can be observed (albeit not to the same magnitude as with hard currency sovereign debt).
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Exotix Capital (2019). Introduction. In: Exotix Developing Markets Guide. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-05867-8_1
Download citation
DOI: https://doi.org/10.1007/978-3-030-05867-8_1
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-05866-1
Online ISBN: 978-3-030-05867-8
eBook Packages: Economics and FinanceEconomics and Finance (R0)