BlackRock Predicts a Taper Tantrum Redux in Emerging Markets
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The emerging-market swoon touched off by the so-called taper tantrum two years ago is destined to repeat itself, BlackRock Inc. says.
When the Federal Reserve raises interest rates, the selloff will be every bit as painful as the rout that ensued in May 2013, when then-Chairman Ben S. Bernanke suggested the central bank would soon wind down its bond-buying program, according to the world’s largest money manager. Developing-nation debt sank as much 10 percent in the wake of the comments while currencies from India’s rupee to Turkey’s lira plunged.