(c)  The behaviour of risk premia  The process of assessing and reassessing risk is captured, to some extent, in the pricing of emerging market debt. 16 17  See Fortune article (11 May 1998). For an exception, see Radelet (1995).
BIS Review 96/1998  - 10 -  Graph 5 EMBI Spread to US Treasuries Daily  Basis Points 1800  Basis Points 1800  1600  1600  1400  1400  1200  1200  1000  1000  800  800  600  600  400  400  200  200  0  l  1991  l  1992  l  1993  l  1994  l  1995  l  1996  l  1997  1998  0  Note: Covers Asian and Latin American securities, from JP Morgan  But this does not capture the full extent of the problem.