The Covid-19 Impact On Emerging Markets

Document Type

Article

Source of Publication

Journal Of Portfolio Management

Publication Date

6-10-2022

Abstract

The COVID-19 pandemic is affecting global markets through unprecedented circumstances. Fears surrounding such a novel virus have led to dramatic market turbulence and massive tumbles in stock prices. In this article, the authors explore the impact of COVID-19 on a comprehensive sample of 46 emerging countries and assess investors' perceptions toward credit risk. The authors also record the volume of new bond issues in conventional and Islamic bond markets and find that indeed COVID-19 has harshly struck the emerging countries, driving sharp declines in stock market indexes, causing an escalation in volatility levels, and widening the premiums on sovereign credit default swaps. Such upheavals, however, did not yet reach global financial crisis levels. The authors finally examine the reactions of the International Monetary Fund (IMF) local governments, and central banks in response to such a crisis.

ISSN

0095-4918

Publisher

Pageant Media US

Volume

48

Issue

8

First Page

202

Last Page

223

Disciplines

Business

Keywords

Global Financial Crisis, Spreads

Scopus ID

85136860463

Indexed in Scopus

yes

Open Access

no

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