Category Archives: emerging markets

Sovereign Default: A Conversation

I’m trying out an experiment, here: Paul Kedrosky and I will be chatting live on the subject of sovereign defaults. Feel free to join in!

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Crazy Ecuador

A couple of major developments on the Ecuador front: yesterday, finance minister Elsa Viteri came out with the rather stunning decision that the country would make the coupon payments on its 2015 global bonds — despite deciding to default on … Continue reading

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Ecuador Craziness Datapoint of the Day

Today is clearly "crazy things people try to do while in default on their debt" day. First Friendfinder Networks tries to IPO, and now Ecuador is trying to borrow more money: Ecuador is seeking $2.6 billion in credits from regional … Continue reading

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Ecuador’s Ingenious Descending Auction

There’s something quite elegant about Ecuador’s proposed bond auction. It’s not doing a typical old-bonds-for-new-bonds exchange, which no one would tender into. And it’s not trying to buy up its debt in the secondary market, where it could be picked … Continue reading

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Did Derivatives Help China’s Poor?

I’ve seen some pretty strong claims on behalf of derivatives in my time, but this one, from the Economist, is definitely among the strongest: The market for derivatives also facilitated investment in developing countries. That investment brought millions of people … Continue reading

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Ecuador Own-Goal Datapoint of the Day

Just how much damage can one president do by defaulting on a single $30 million coupon payment? Well, he can cut off his country’s access to US markets, via the Andean Trade Promotion and Drug Eradication Act, and he can … Continue reading

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Ecuador’s Small Investors

Since I wrote about Ecuador on Friday, there’s been a trickle of emails coming in from individual investors who hold the country’s bonds. These two came in quick succession: I’m not into locking up on default for months/years while the … Continue reading

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Ecuador’s Idiotic Default

In the annals of idiotic political decisions, today’s default by Ecuador has to rank pretty high. The country failed to pay a $30.6 million interest payment on its 2012 global bonds, despite the fact that it has $5.65 billion in … Continue reading

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Zimbabwe: When Even the Central Bank Can’t Keep Up

The Reserve Bank of Zimbabwe reports: Between the 10th and the 20th of November, 2008, total fraudulent cheques we intercepted in the clearing system had risen to $60 hexillion ($60,000,000,000,000,000,000,000). Someone really ought to tell Zimbabwe’s central bankers that there’s … Continue reading

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Zimbabwe Datapoint of the Day

Steve Hanke is mainly known in the world of international economics for his conviction that dollarization is the cure for all ills. (How’s that working out, Steve?) But he’s come up with something really rather fabulous for the Cato Institute: … Continue reading

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