International lenders’ and investors’ behaviour: what the markets tell us we didn’t know.

Drawing on interviews with international financial players based in London, New York, Chicago and other US financial centres, this paper aims to provide further information and insights into lenders’ and investors’ behaviour and their attitudes towards developing countries, and to identify new elements since the financial crises of the late 1990s. Aspects to be highlighted include players’ most recent traits, as well as trends they are following, in terms of investment strategies, allocation decisions and risk-management procedures. The paper ends with policy suggestions on how to encourage international lenders and investors to channel a larger proportion of their funds to developing countries.