COVER STORY: Finding fortune

COVER STORY: Finding fortune

To many, a brutal new year’s sell-off in emerging market assets seemed to entrench a view that the biggest risk to financial stability now sits in the emerging world — including Latin America. Average yields in JPMorgan’s benchmark index of emerging market local currency government bonds reached 7.2% at the end of January, up from 5.2% in April last year, and compared to yields on 10-year US Treasuries still less than 3%. Within the region, Argentina was forced to a 23% devaluation of the peso in January, its biggest since 2002. By the end of February, average yields in the emerging markets bond index had returned to below 7%. Currencies rallied: the South African rand and the Turkish li

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