Pimco's Rahman Sees Lots of Idiosyncratic Risks in EM

The video discusses the impact of geopolitical and trade risks on emerging markets, highlighting the role of the Federal Reserve in providing comfort. It examines the influence of a strong dollar on emerging market returns and the potential for increased defaults. The video also explores the importance of structural reforms in countries like Mexico, Brazil, and Argentina, emphasizing the idiosyncratic nature of these risks and the gradual progress of reforms.

What is one of the main factors driving returns in emerging markets?

• Geopolitical stability

• Local currency strength

• Strong dollar

• Federal Reserve policies

How does a strong dollar potentially affect emerging markets?

• It stabilizes geopolitical tensions

• It boosts local economies

• It reduces trade risks

• It increases the likelihood of defaults

Which area is more prone to defaults due to a strong dollar?

• Household debt

• Sovereign debt

• Corporate debt

• Local government debt

Which country is mentioned as making gradual progress in structural reforms?

• Mexico

• South Africa

• India

• Venezuela

What is a common characteristic of the structural reforms in emerging markets?

• They are universally successful

• They are slow and piecemeal

• They are rapid and comprehensive

• They are primarily focused on technology