When it comes to risky assets (and emerging markets debt is… - Hélène Rey

" "
When it comes to risky assets (and emerging markets debt is considered a risky asset) risk and specifically credit risk gets priced in the yields of bonds issued by this country. When times are good, investors seem to be optimistic and the price of risk is very low across all kinds of assets. But when liquidity starts to be withdrawn, the price of these risky bonds in emerging or low-income countries goes up.

Hélène Rey

Sources available for members. Sign up free to see where this quote comes from

English

Collect this quote

About Hélène Rey

(born 1970) is a French economist who serves as Professor at London Business School (LBS). Her work focuses on international trade, financial imbalances, financial crises and the international monetary system.

Also Known As

Alternative Names: Helene Rey

All quotes from Hélène Rey Similar Quotes by other Originators

Originators like Hélène Rey:

Ha-Joon Chang Lawrence Summers Peter Schiff Michael Hudson Michel Evgenij Chossudovsky

Additional quotes by Hélène Rey

More vulnerable countries have a much harder time borrowing. Sometimes, financial actors do not want to lend at all and we are faced with episodes of "sudden stops" of capital flows into emerging markets with no way to roll over the debt.

The risk of social unrest in many countries should not be underestimated.

Debt distress, inflation and hunger in the world are linked to the Russian invasion of Ukraine.

When it comes to risky assets (and emerging markets debt is considered a risky asset) risk and specifically credit risk gets priced in the yields of … - Hélène Rey

About Hélène Rey

Also Known As

Enhance Your Quote Experience

Additional quotes by Hélène Rey

Limited Time Offer