AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
3min chapter
China Pushes Yuan Aggressively Higher As Corporate Bonds Implode
Market Depth
Why Dollar Going Up Is Bad for Emerging Market Debt
When an emerging market based corporate or whatever entity, whatever, borrows in USD, what that is essentially that's opening a short USD position. And just like any other short position, if your short USD and the dollar goes up, your short position is getting more and more expensive to buy back and cover and exit. If it's a big enough move higher, then you might find yourself with unlimited downside and unable to even close out your position and you'll just be destroyed financially. So I hope that helps for anyone who might have needed some more clarity on why dollar going up is bad for emerging market debt. It's a dollar short position. Dollar goes up. That's bad for your
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode