These developments - plus a 19bp fall in dollar libor, helped deliver a total return of 0.55% for the calendar month, the second highest in 2002.
Short term credit spreads tightened by 25bp in both Russia and Turkey, two countries with relatively high weightings in the Index portfolio, and by similar amounts but with less effect on the overall Index margin in the Czech Republic and Croatia. Overall, the Index margin tightened by 5 basis points to 186 over US$ LIBOR, hopefully indicative of a recovery in investor confidence following a nervous summer.
Downward pressure on Russian credit margins comes as no surprise, given a secure macroeconomic position and continued evidence of...
