PARTING SHOT: Fighting back

PARTING SHOT: Fighting back

Bonds

The size of the pools of emerging market and frontier market investors are completely different. So instead of being in a large, nice pool, you would be in a glass. The imbalance between the two pools of money is quite big. And in the short term, the impact on prices [of a move to the frontier index] would be quite bad. Usually the multiples at which companies trade when they are in a frontier market index are lower than the ones in emerging markets. In the short term, the capital outflow would be $1.5 billion to $5 billion. Everybody has been doing back of the envelope calculations because the data is not perfect. But just saying $2 billion — it’s a lot.  We need to build up

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