That framing made sense in the aftermath of the 2013 “taper tantrum,” when several large EM economies were running wide current account deficits and relying heavily on external funding.

Today, the environment looks materially different as external balances have improved across much of the developing world and sovereign credit quality has strengthened. Meanwhile, developed markets are confronting rising fiscal pressures and greater policy uncertainty. As a result, the traditional risk hierarchy between EM and developed markets looks less clear-cut than it once did.

Read the full ‘Thought Leadership’ article at the link below