In this detailed presentation, we examine how the global pandemic has affected the financial sector in emerging and frontier markets, looking in particular at:
- Our key takeaways from the 2007-09 bear market
- The current policymaker response
- Changes seen so far to banking regulations
- Where we see the main pressure on earnings arising
- Which banks should be most resilient to the downturn, and over the cycle
- Recent price performance, which has been driven more by liquidity than discrimination along fundamentals
- The potential for certain banks to hedge portfolio FX risk
- The outlook for portfolio positioning ahead of any market recovery
- Potential winners from technology disruption
- Our top picks in the sector
Further details on some of these topics can also be found in the following recent reports:
FM and EM Banks: The 3-D threat from Coronavirus
FM and EM Banks: Where the rate-cut cycle hits hardest
How to hedge EM currency risk through bank equities
The future of payments: Could Covid-19 end cash’s reign?
Tech disruption in emerging markets and the battle for mobile payments supremacy