Emerging market bonds backed by political risk insurance (PRI) lost a lot of friends following Argentina’s debt default in 2002, as investors discovered that events they thought were covered were actually outside PRI’s scope.

Since then traditional providers such as the Overseas Private Investment Corporation (OPIC) and the Multilateral Investment Guarantee Agency (MIGA) have introduced new products that expand the scope of these policies, according to a report by Fitch Ratings.

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