CS Report AQ edits

[Adam Quinton]

Dear All (and esp Chris as editor)

I went through the report. Tried to tidy up, cut out duplication etc. Only moved one para which seemed better suited higher up the doc. A few comments:

1. Top of P3 there is a reference to % CS risk buckets. Since you do not work for CS talking about this and using "we" (which I changed) might not make sense.

2. The chart on P4 seems t have some odd countries in it. Include more relevant aka better know ones?

3. besides the fact that I shortened Emerging Market to EM through out earlier in the piece you talk about "developing" countries. Is that menat to by synonymous with EM or not? Comes across as a little unclear.

4. You can change these but I tried to make the titles on the charts/tables descriptive og what the chart/table if meant to tell you. Other wise they are boring/unhelpful.

5. There were a few instances where you refer to FC as opposed to use the word currency ... tried to pick these out and use currency in all cases.

6. At the bottom of p11 there is a Brazilian exchange rate number missing (higlighted in yellow)

7. I changed the language along the lines of "the markets prefer XYZ" to say "investors prefer XYZ". Clearer what you mean that way.

8. What I have renamed Table 1 is pretty unclear and the text around this needs to be much clearer. Also it is not obvious that all of the data in that table carries useful info for the readers.

What is the next step from here? Tidy up per the comments above and send to Ryan?

Best Regards

Adam

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Adam Quinton 

aandaq...@gmail.com

+1-203-219-5215

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[Joanna Zeng]

Thanks Adam. Just a quick response to your comment #6.

from 1992 to 2013, the US Dollar - Brazilian Real exchange rate averaged 1.79 reaching an all-time high of 3.95 in October of 2002 and a record low of 0.00 in January of 1992.

The number is not missing according to the data source(http://www.tradingeconomics.com/brazil/currency), it is 0.00. However, if it is confusing, the point here is it was a small number but still positive, then we can change it to "virtually 0'.

Per our conversation yesterday, we were hoping to send this draft to Ryan Sullivan today as promised. Chris, please kindly let us know if you can process Adam's comments or if you need anyone's input on a specific section?

Really appreciate it,
Joanna

[Christopher Wood]

Thanks a lot, Adam.

Yes, I can proceed with incorporating all comments except for those pertaining to specific points in the text, specifically:

#2 - Anna - remove Guatemala and Belarus (sorry, Lukashenka)? Alternatives?

#8 - Melissa - can we add 2-3 sentences explaining why the means and standard deviations are useful and how to interpret them? Is the volatility index helpful?

What do you guys think?

Chris

[Melissa Amler]

Apologies for just getting to this now, but to Adam's point:

Table 1 is meaningful because it demonstrates how domestic factors in EM economies - such as short term interest rates and inflation forecasts - are stronger determinants of mean returns and standard deviation for EM local currency debt as opposed to global factors such as the U.S. 10-year yield and the VIX. This chart underscores the diversification benefits offered by EM local currency debt market by offering analysis (over three different periods) of why EM local currency debt return and volatility can be better understood through domestic economic indicators rather than global trends. With that said, during the 2008 global financial crisis, global factors became more correlated with EM local currency debt mean returns and standard deviations as compared to the period before and after the crisis. 

Does that clarify the table better?

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______________

Melissa Amler

Candidate, Master of International Affairs, 2013

Columbia University, School of International and Public Affairs

[Christopher Wood]

Dear Team,

Attached is the final version of the report edited and updated in line with Adam's comments.

If you have a moment, please glance over your sections and let me know about any last minute requests/changes.

And one final question - Ryan, should we indicate a source for your timeline?

Thank you!!

Chris

On Tue, Apr 23, 2013 at 3:28 PM, Adam Quinton <aandaq...@gmail.com> wrote:

[Ryan Hakim]

Thanks Chris. 

I would also add page numbers. On the current page 9, there are some spacing issues - have a look at the green lines. 

As for the timeline, I edited it from the Russell report, but we agreed as a group that history wasn't proprietary, so we didn't have to. Those with other views, please say so now.  

On the question of sources, are we still keeping 'Morningstar Investments and Services' as a source for Melissa's charts?

Those are all my comments, thanks to everyone for the hard work!

Ryan

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Ryan Hakim | MPA International Finance and Economic Policy
Columbia University | New York, NY 10027

Mobile +1 917 621 6562 | Email ryan....@em-economics.com

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[Melissa Amler]

Here is the full source: 

2013 Morningstar, Investments and services offered through Morgan Stanley Wealth Management LLC, and accounts carried by Morgan Stanley & Co. Incorporated; members SIPC. April 11,2013

[Adam Quinton]

RE the timeline - history isn't proprietary but the selection and organization of the visual is taken from a public source.

So unless your are prepared to put - Source: SIPA Capstone Team or whatever you should always source from the point of origin.
Adam

On Wed, Apr 24, 2013 at 12:06 PM, Ryan Hakim <ryan...@gmail.com> wrote: