Argentina: High Hopes on an IMF Program, But the Task Ain’t Easy
• The Government was successful in lowering the FX spread from a peak of nearly 150% in mid-October to 85% by early November. To do this, it relied on selling dollar bonds at 16-17% yields as well as auctioning dollar-linked instruments to provide devaluation coverage. The gove… Become a member to read the rest […]
Global Letter: A tale of toggle PIKs
Credit market excesses typically occur in times of low interest rates, when investor demand for higher-yielding instruments leads to the creation of asset classes with returns that, in hindsight, were out of line with the risk involved. So it is of at least prima face concern 1… Become a member to read the rest […]
ASIA: Weekly politics update
Below is the weekly update of political developments across East Asia. Please do not hesitate to contact us if you want to discuss any of the countries mentioned in more detail. CHINA/AUSTRALIA: Beijing’s list of grievances shows both sides are dug in China’s Fore… Become a member to read the rest of this article
US/CHINA: Trump’s lame duck period brings new risks for bilateral relations
The US-China relationship faces downside risk over the next two months, given that the Trump administration will not have to manage the consequences of any new coercive policies. Possible last-minute actions include new tariffs, export controls, financial and non-financial s… Become a member to read the rest of this article
ETHIOPIA: Endgame unclear
Despite Prime Minister Abiy Ahmed’s repeated assurances that the military campaign in Tigray will end soon, little indicates that an end to hostilities is imminent. The two-week-old conflict between Addis Ababa and the Tigray People’s Liberation Front (TPLF) is spilling acro… Become a member to read the rest of this article