Saturday, December 12, 2015

Goldman's Heat Map Of Emerging Markets Most At Risk From Fed Liftoff

Goldman Sachs via ZeroHedge:
Goldman summarizes in a heat map, the EM nations with greatest potential for the upcoming Fed liftoff to cause a major disruption..
The darkest shaded regions indicate the largest risks.
The current credit landscape suggests investors should be cautious on various EMs, although not overly concerned about the aggregate picture.
  • China is the “poster child” of credit imbalances and looks most exposed: a rapid private sector credit build-up has caused the credit gap1 to widen out to the highest level across EMs, with high levels of bank leverage as well. The offset is that external and government leverage are at very low levels. Korea is also exposed on similar dimensions, although to a somewhat smaller extent than China....
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