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Breakingviews: Emerging market standouts

Wednesday, August 13, 2014 - 02:05

Richard Beales and Martin Hutchinson consider this year's 39 percent surge in emerging market government debt issues and pick borrowers that shouldn't let investors down.

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Emerging market governments have been issuing tones that at this about 40% more in the first half of the year -- the first half of -- Mustn't you'll take a look at this but some of these governments probably not spending money in the best possible way. Well a number of these countries apart from what the governments are doing. Where they're running huge balance of payments deficit say you've got places like Senegal in Kenya. Senegal's top 500 million -- needed two billion. Against rating one borne out the balance of payments deficit I'm not really keeping the money and of course you didn't watch what happens when liquidity dries out because the guys that balance of payments deficits. We're going to have to scramble day -- holiday indeed in cup back in -- Right and as you put in you'll continue to peace in the in the crisis went to resonate to -- nine. To quit as he went off the cliff this year instruction -- think it was a device in a very shall. Period you take a look at at some of these emerging markets that is a few names that on -- sort of -- for investors list for the for these kind of reasons that you just mentioned on terrorism. Is a big name but they just called me IMF they run a big deficit that's what that's not an analyst who is on. This is we don't travel with John McCain took that six months again for a comment that well if you look at the countries that -- balance of payments surplus is. I'm dawn you know I mean Russia's -- warm bodies catastrophic not obviously. You've got a bunch of countries that are really not home people's radar screens but actually should be pretty solid in the next out. Malaysia is obvious -- the Philippines. On the poll is solid enough. Hungary. And then two in Africa Nigeria has got a nice balance of payments position and say Zambia. So they should be much at all from the next downturn because -- perhaps point shot. On that fall to the extent that -- they should keep it. All right interesting selection of emerging market borrowers. That would leave it there and stay tuned for more breaking news.