Armstrong Economics Blog/Emerging Markets
Re-Posted Jun 22, 2018 by Martin Armstrong
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?
You are a voice in the wilderness
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 Indi