BIS paper finds investors take simplistic approach to emerging market risks
Investors found not to 'meaningfully differentiate' between emerging markets
Sovereign credit default swap (CDS) returns post-2008 are largely driven by a single global risk factor, and investors tend to determine risk not on the basis of fundamentals but on a country's designation as ‘developed' or ‘emerging', according to research published on January 26 by the Bank for International Settlements (BIS).
The working paper, How do global investors differentiate between sovereign risks? The new normal versus the old, by Marlene Amstad, Eli Remolona and Jimmy Shek, focuses
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