After the storm

Also Interesting

• EMEA-Listed ETF Flash Flows
• Does corporate America have a debt problem?
• Interview Hanneke Veringe

For all the market turbulence they’ve suffered this year, emerging countries are in far better shape than during past crises. In many cases, economic fundamentals remain positive notwithstanding the blanket selloff. Unlike past bouts of turbulence, this year’s slump in emerging market (EM) debt wasn’t caused by a slump in global growth, or a generalised equity market crash or even a commodity price collapse. Instead, it was a combination of of slower-moving threats – the risks posed by an accumulation of EM corporate debt; the impact of the US strong dollar on countries with dollar debt; the steady withdrawal of global monetary stimulus worldwide and US rate rises; the repercussions of US trade wars – that gave investors the urge to take profits on 2017’s astonishingly good run.