Graph 4 $ Cross-currency Basis Swap Spreads* 5-year funding Bps  Bps Swapping euro into $  75  75  50  50  25  25  0  0 Swapping $ into $  -25  -25  -50 -75  -50 l  2008  l  2009  l  2010  l  2011  2012  -75  * Premium paid for hedging cash flows on foreign currency bond issues Source: Bloomberg  Over the past few years, issuance in the first quarter, particularly by Kangaroo issuers, has been strong.
The implications for much of the emerging market and the developing world have been profound, but given the increasingly important role of emerging markets in global economic prospects, the risk of spillbacks to advanced-economy growth prospects has been significant as well.