El-Erian Fears 'Paradigm of Non-Payments' in Emerging Markets

The video discusses the aftershocks of COVID-19, focusing on the developing world, particularly Latin America, where the crisis is not just financial but also a matter of life versus livelihood. It highlights the risk of defaults in emerging markets due to difficult choices between debt service and health budgets. The discussion also covers how central banks like the Fed, ECB, and BOJ are influencing markets, pushing investors towards higher-risk areas. The importance of being selective in investments and the potential for capital impairment are emphasized.

In what ways are investors currently focusing their attention, according to the text?

What opportunities exist in the emerging markets as discussed in the text?