The IMF's Global Financial Stability Report also provided some sobering statistcics on potential emerging market weaknesses
Where will the next financial crisis come from? Events of the past year suggest emerging markets are the place to look. We've seen two wobbles already, first in May last year when the US Federal Reserve started talking about reining in quantitative easing, then in January this year when the "taper" actually started.
Sure enough, the International Monetary Fund's biannual Global Financial Stability Report provided some scary statistics on potential frailties. In the IMF's "severe and adverse" scenario meaning steep rises in borrowing costs, perhaps triggered by capital rushing towards the US, and sharp falls in profits the corporate debt classed as "at risk" in emerging markets could increase by $740bn.
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