NEW YORK (Nov 14): The selloff in emerging markets after Donald Trump’s US presidential election was intense. A closer look reveals that things aren’t as bad as they might seem.

While local-currency bonds suffered their biggest losses last week since 2008 following the Republican’s surprise victory, a gauge of volatility in developing-market currencies remained 16% below the levels seen in February. The cost to hedge against foreign-exchange losses is 38% cheaper than it was in August 2015 when China’s yuan devaluation rattled global investors.

In a global bond selloff fueled by expectations that Trump will increase government spending, emerging-market traders are by no means capitulating. While bracing for the risks of protectionist policies, they’re betting faster growth and narrowing current account deficits will help most developing countries weather the rout.

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