Emerging Markets and Sovereign Risk (eBook)

David E. Allen, University of South Australia, Australia Astrid Ayala, Universidad Francisco Marroquín, Guatemala Banita Bissoondoyal-Bheenick, Monash University, Australia Robert Brooks, Monash University, Australia Szabolcs Blazsek, Universidad Francisco Marroquín, Guatemala Marie Cavanaugh, Standard & Poor's, USA David Chaikin, University of Sydney Business School, Australia John Chambers, Standard & Poor's, USA Serge Darolles, Université Paris Dauphine, France Jérémy Dudek, Université Paris Dauphine, France Anna Fisher, BAEconomics Pty Ltd., Australia Brian Fisher, BAEconomics Pty Ltd., Australia Anna Golab, Edith Cowan University, Australia Raúl González de Paz, Central Bank of Guatemala, Guatemala Sean Hinton, Terbish Partners, China Gaëlle Le Fol, Université Paris Dauphine, France Max McGraw, Sovereign Group, USA Jeffrey Manns, George Washington University, USA R McFall Lamm, Jr, Stelac Advisory Services LLC, USA Lebogang Mateane, Schwartz Center for Economic Policy Analysis, USA Mauro Megliani, Catholic University of Milan, Italy Albert Metz, Moody's Investors Service, USA Robert Powell, Edith Cowan University, Australia Willi Semmler, The New School, USA Prakash Kumar Shrestha, Nepal Rastra Bank, Kathmandu, Nepal Dr. Lúcio Vinhas de Souza, Moody's Investor Services, USA

Cover 1
Half-Title 2
Title 4
Copyright 5
Contents 6
List of Figures 8
Part I Risk and Emerging Market Investment 18
1 Economic Growth vs. Equity Returns in Emerging Markets 19
2 Default Risk of Sovereign Debt in Central America 34
3 Contagion in Emerging Markets 61
4 Aspects of Volatility and Correlations in European Emerging Economies 75
5 The Political Risk of Offshore Financial Centres: The Cyprus Bail-Out 97
Part II Rating Agencies and the Sovereign Rating Process 122
6 Travels in the Ratings Space: Developed and Developing Countries’ Sovereign Ratings 123
7 The Sovereign Rating Regulatory Dilemma 132
8 A Framework for Understanding the Acceptability of 167
9 Sovereign Wealth Funds and Investment Law 181
10 Common Characteristics of Rated Sovereigns Prior to Default 196
Part III Management of Sovereign Risk and Ratings 207
11 Big Projects in Small Economies: The Determinants of Sovereign Risk and Its Control 208
12 Monetary Policy and International Reserves in Emerging Economies: Theory and Empirics 226
13 Stock Market Impact of Sovereign Rating Changes: Alternative Benchmark Models 244
14 Reserve Adequacy Measures for Emerging Market Economies 266
15 The Price Impact of Sovereign Rating Announcements 288
Index 306