Friday Five

20% of the EM sovereign index is distressed as tight global financial conditions have locked many EMs out of the market. Countries with limited market access and large external financing needs will struggle to plug their funding gaps.

We met clients over the past fortnight in London, with a severe EM credit rout setting a dour tone. Most investors were not clear if we had reached the bottom, but agreed that the sell-off had unlocked pockets of value.

We highlight the key common features that newly created EM fintech unicorns share, and what investors appear to value in this challenging macro environment.

Nigeria may be ejected from the MSCI FM and FM 100 equity indices on 31 August. The impact on share prices in Nigeria is likely to be modest.

Despite the good news on the IMF programme review, more challenging external financing conditions allied to protests sweeping the country have seen Ecuador's bonds fall sharply.