EM - Back to the Future with the Fragile 10

Emerging Market Economist, Emerginomics

Tatiana Orlova

Emerging Market Economist

Emerginomics

Thematic (Sector/Industry)

<div class="content-highlight"><p>Due to their position as most liquid EM assets (along with Mexico), Polish fixed-income assets tend to suffer at the times of general EM selloffs and benefit from bouts of EM exuberance. We think that such sell-offs provide excellent opportunities to buy Polish assets. Should investors pay more attention to the rift between Polish political leadership and the EU? Is there a danger of the economy losing momentum? We are not too concerned, and think Polish assets could receive a further boost from a sovereign debt rating upgrade in the coming months.</p></div>

Due to their position as most liquid EM assets (along with Mexico), Polish fixed-income assets tend to suffer at the times of general EM selloffs and benefit from bouts of EM exuberance. We think that such sell-offs provide excellent opportunities to buy Polish assets. Should investors pay more attention to the rift between Polish political leadership and the EU? Is there a danger of the economy losing momentum? We are not too concerned, and think Polish assets could receive a further boost from a sovereign debt rating upgrade in the coming months.

Poland Is One of the Most Resilient EM Economies. But It Still Needs EU. Just as EU Needs Poland