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EM Corporate Health Is Flashing Red

by Arthur Budaghyan, Head of CoreMacro  

EM corporate credit spreads are too tight according to our fair value model. Such expensive valuations in conjunction with a strong sell signal from our Corporate Financial Health (CFH) Monitor signify that the EM corporate credit market is very vulnerable. The CFH Monitor currently heralds a major relapse in EM risk assets. A new relative value recommendation: long Russian and Chilean / short off-shore China corporate credit.

BCAリサーチ | Emerging Markets Strategy

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