Report
Patrick Artus

Emerging countries may be in trouble as long as investors accept low dollar long-term interest rates

Despite the sharp fall in dollar long-term interest rates, problems for emerging countries are now reappearing (capital outflows, exchange rate depreciation). Yet, low dollar interest rates are normally positive for emerging countries. But the explanation today is that despite the low long-term interest rates in the United States, US and non-resident investors continue to be buyers of dollar-denominated bonds. Investors would have to reject these low dollar interest rates for the situation of emerging countries to improve.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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