Fears over a return to "original sin" are overdone

An improvement in global risk appetite and a sharp fall in emerging market bond yields over the past few months have led to a flurry of planned eurobond issues from countries in sub-Saharan Africa. This has led to some commentators voicing concerns over a return to “original sin”, characterised by excessive borrowing in foreign currency in the region. In this Watch, we explain why, for now at least, these fears look overdone.