Macro Analysis /
Global

Foreign ownership of EM local government debt signals capital outflow risk

  • Non-resident holdings of domestic government debt in EM have declined post-Covid relative to history

  • Level and change vary across countries, with larger EM generally showing higher levels but also greater declines

  • But those with elevated non-resident holdings (absolute and versus history) face greater risk of capital outflows

Foreign ownership of EM local government debt signals capital outflow risk
Patrick Curran
Tellimer Research
19 May 2021
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