Fixed Income Analysis /

EM Bond Market Sensitivity Analysis

    Lloyd Miller
    Lloyd Miller

    Head of Developed Markets and Latin America Research

    ETM Analytics
    19 May 2020
    Published byETM Analytics
    The following is a follow-up to the Bond-Beta risk assessment report last released in August 2019 (see the framework in Appendix A attached). The aim of this report is to analyse how recent global financial market developments have altered emerging market country-specific riskiness vs the broader EM bond market, as well as the change in the relative effects that broader bond market dynamics and local currency movements have had. These developments include the COVID-19 outbreak and subsequent shift seen in global developed-market and emerging market central banks towards looser policy stances, as well as the increase in fiscal support pledged by governments across the world.