How Dangerous Is Emerging Markets Dollar Debt?

  • Two decades after the Asian crisis, emerging markets have high levels of corporate debt and especially more dollar denominated debt.
  • This makes them quite vulnerable to external shocks to earnings, currency movements and changes in interest rates.
  • On the whole though, we haven’t reached the dangers of two decades ago, but one shouldn’t get too comfortable with that.

Source: How Dangerous Is Emerging Markets Dollar Debt? | Seeking Alpha