Emerging-Market Crisis Threat Does Little to Scare Bond Buyers
A worker smokes a cigarette as cranes operate at the construction in Macau, China, on May 10, 2015.
Photographer: Lam Yik Fei/BloombergThis article is for subscribers only.
To hear regulators tell it, traders should be up at night worrying about a crisis in emerging-market debt.
A sharp increase in U.S. interest rates could threaten financial conditions in developing economies, Federal Reserve members said in meeting minutes released Wednesday. The Financial Stability Oversight Council echoed this warning in a report released this week that said “a rise in yields in advanced economies could spark a sell-off in emerging-market bonds and destabilize markets.”