Published April 2020
Question 1 of 2
Will the current market situation (Coronavirus) be the catalyst for a major credit crisis where late-cycles symptoms (e.g. cov-lite/doc-lite, loosening of covenant headroom, wider allowances for EBITDA adjustments, strong inflows of capital/competition among lenders, historically low default rates etc.) have already been addressed by many participants in the market?
Published November 2019
When should investors consider hard vs. local currency in EM Debt?
Danske Bank Asset Management
Given that local currencyâs primary driver is currency risk, investors should favour local currency over hard currency when they believe currency risk is attractive relative to credit risk. This is typically in early cycle environments when EM economic growth is accelerating.