UBS's Fiotakis on Rates and Emerging Markets

The video discusses the challenges faced by central banks and their impact on emerging markets (EM). It highlights the differences between 2018 and 2019 for EM, focusing on growth, borrowing costs, and market expectations. The outlook has shifted, with more downside risk seen in US 10-year rates, making markets more forgiving of EM missteps. The theme of carry trades is also explored, with potential limits from G10 central banks.

What does the statement about 10-year rates in the US imply for emerging markets?

In what ways might the market be more forgiving towards emerging market missteps?