A little too much is being made of the data on fx issuance, which has been fairly strong for inv. grade issuers --

a) lots of the (net) issuance is from countries that have plenty of assets and don& #39;t need the money;
b) outflow from local markets hasn& #39;t been reversed

2/x
fx bonds should normally be a relatively modest share of the funding of most emerging economies --

otherwise, countries end up with big balance sheet risks.

Argentina& #39;s Macri era fx borrowing binge is a case in point.

and demand local currency bonds hasn& #39;t bounced back

3/3
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