Emerging Markets' Euroclear Ambitions Boost Bond Returns

The video discusses the impact of opening local debt markets on currency appreciation and foreign investment, highlighting Ukraine and Egypt's success in attracting investors. It outlines the stages of expanding debt markets, such as Euroclear settlement and bond index inclusion. The video also examines Turkey's challenges in maintaining foreign interest in its debt market and potential strategies to enhance attractiveness.

What is a potential effect of opening up local debt markets to foreign investors?

• Decrease in foreign investment

• Currency depreciation

• Lower interest rates

• Currency appreciation

Which two countries have seen significant gains against the dollar due to local debt issuance?

• Turkey and Egypt

• Serbia and Kazakhstan

• Ukraine and Turkey

• Ukraine and Egypt

What is one of the stages in expanding a local debt market?

• Decreasing foreign ownership

• Increasing local taxes

• Allowing transactions through global depositories

• Reducing interest rates

Which country has seen an increase in foreign ownership of local bonds after joining Euroclear?

• Ukraine

• Egypt

• Kazakhstan

• Turkey

What is Turkey considering to make its local bonds more attractive to foreign investors?

• Joining the European Union

• Reducing inflation

• Euroclear settlement

• Increasing interest rates