Weaker emerging market currencies have hit investors who allowed bond managers to talk up the returns of local currency bonds. To get a full view of the damage, look back two years.
Hugo Cox
Indonesia and India face structural obstacles to economic growth from the double whammy of weaker currencies and high oil prices. Lack of fuel subsidy reform is holding both back.
Hedge funds, urged by banks to buy big into EM debt ahead of Japanese institutions, were left high and dry, says the UK fund house's co-head of research.
The bank's senior economist, Frederic Neumann, highlights three reasons why investors should be worried as Asian growth appears predicated on pumping economies full of credit.
