Risk perception versus reality? That gap might be costing you.

The latest GEMs Risk Database dropped some interesting numbers on default and recovery rates across emerging markets. World Bank's Data360 platform compiled the stats, and here's the kicker: actual investment risks in these regions consistently run lower than what most market participants expect.

We're talking about measurable divergence between perceived danger and documented outcomes. The data reveals patterns in sovereign defaults, corporate restructurings, and asset recovery that challenge conventional wisdom about emerging market exposure.

Worth digging into if you're allocating capital beyond developed markets. Sometimes the monsters under the bed aren't as scary as the shadows suggest.