Bearish forecast for emerging debt

G3 interest rates are currently at historical lows. As a result, the outlook for emerging debt cannot be judged independently. It is expected that if the Fed Funds rate rises 200bp to 3% over the period of the next 9-12 months, this level would still be lower than what the mean emerging economies had to live with through the 1990s. Fundamentally, emerging countries are now more strongly positioned compared to 1994, 1997 or 1998, when emerging countries experienced severe crises. The balance of payment position of the emerging economies is currently in current account and balance of pay...