RT Journal Article
SR Electronic
T1 The COVID-19 Impact On Emerging Markets
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP jpm.2022.1.378
DO 10.3905/jpm.2022.1.378
A1 Rwan El-Khatib
A1 Anis Samet
YR 2022
UL https://pm-research.com/content/early/2022/06/10/jpm.2022.1.378.abstract
AB 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 both 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.