ENGAGEMENT IS THE WAY AHEAD

摘要

The financial progress of most emerging economies has been spectacular in recent years. One indicator of this success is the decline in interest rate spreads over US treasuries on emerging market external debt. In 2003, this averaged 452 basis points (bp) over US treasuries. Now, however, these spreads are at historic lows, well below 200bp over treasuries, despite the 425bp tightening from the US Federal Reserve Board in the past two years.