https://pbs.twimg.com/media/DlUFxRWXgAYVN7-?format=jpg
Another illustration of strain in EM: chart shows the spike in the return on committing to hold the Turkish Lira for 12 months, i.e. the rate implied by 12-month currency forwards. This stands at 27% and yet the Lira is looking fragile. Our models say the Lira is now undervalued.