Taps Coogan – August 8th, 2022

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The following chart, via Acemaxx Analytics, shows that the number of emerging market countries in debt restructurings and/or defaults has exceeded the number during the Global Financial Crisis.

Given how terribly emerging markets have performed this year, with benchmark equity ETFs having fallen by something in the ballpark of 35%, with their sovereign yields trading at an over 10% yield spread to treasuries, and the default cycle in full swing, it’s at least worth contemplating how close we may be to the crisis peak for emerging markets.

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