Emerging mkt sovereign bond (question) mkt, countries, question, default

orang3eph

How is this statement made by Higgins incorrect?
“Higgins: “Over time, the quality in emerging market mkt sovereign bonds has declined, due in part to the contagion and the competitive devaluations that often accompany crisis in emerging markets. When one country devalues their currency, others often quickly follow and as a result the countries default on their external debt, which is usually denominated in a hard currency.”
Came this in the Schweser Practice exam 2 Afternoon Session Q19.3. Thanks in advance.

siavosh

Ilvino you are right. Just saw in investopia. As at year end 2006 China has total external debt of 322b vs FX reserve of 1,460b. Russia 263b vs 450b.