Emerging markets 'immune' to US sub-prime contagion

Field explained that the world of proprietary trading desks and in-house hedge funds is “largely alien” to emerging banking, while broader economic contagion is also limited. “The first obvious point is that emerging markets do not themselves have a sub-prime debt market,” he said. “Personal finance is underdeveloped in emerging markets. Average leveraging levels are very low. Many countries are only now developing mortgage markets, and have only begun lending at the higher quality end of the market. There is no equivalent to the sub-prime market.” Field said he believed that eme...