Emerging markets more vulnerable than ever to Fed tightening,
Bank for International Settlements BIS says there had been a “massive expansion” in borrowing on global bond markets by banks and companies in developing countries.
Emerging markets may be even more vulnerable to an interest rate shock today than they were during the East Asia crisis in 1998, the Bank for International Settlements (BIS) has warned.
The Swiss-based watchdog said there had been a “massive expansion” in borrowing on global bond markets by banks and companies in developing countries, leaving them exposed to “powerful feedback” risks as borrowing costs rise in the West.
Emerging markets more vulnerable than ever to Fed tightening, warns BIS
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