The Economist looks at the moral hazard for emerging market countries that is being created by the low spreads on their bonds. In the global market’s desperate search for higher yields, the spreads on emerging market debt have declined precipitously. Even countries like Argentina which purposely defaulted on a number of bonds five years ago only have a spread of 2% over US treasuries.
This entry was posted by David on January 31, 2007 at 4:13 pm, and is filed under Investing. Follow any responses to this post through RSS 2.0.Responses are currently closed, but you can trackback from your own site.