Middle East conflict tests emerging market debt

US President Donald Trump’s announcement of a pause on infrastructure strikes, conflicting accounts of diplomatic activity, and recent intimations that US marines may launch an operation to seize Iran’s primary export hub at Kharg Island have raised uncertainty levels. Emerging market debt hard currency spreads have widened in aggregate since the start of the conflict, although the scale of widening remains contained. What has driven spread widening? How has the market differentiated between Middle East sovereign credits? Which countries remain most exposed to the crisis? Read more about...