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....
.. ..
MORE
