Coming Crisis: Emerging Market Debt

QUESTION: Mr. Armstrong; Just to clarify, a continued rate hike in dollars will send Emerging Market debt into chaos and possibly default. Is this both public and private?

Thank you.

You are a voice in the wilderness

PK

ANSWER: Oh yes. Both public and private emerging market debt raised money in dollars. A 2% increase in interest rates could spark a sharp rise in the proportion of emerging market corporate debt issues at risk of default. This is true especially in Brazil, Turkey, and India.

Latest Posts

Market Talk – February 23, 2024

ASIA:   The major Asian stock markets had a mixed day today: NIKKEI 225 increased 836.52 points or 2.19% to 39,098.68 Shanghai increased 16.52 points or 0.55% to 3,004.88 Hang [...]
Read more