Brazil, India corporate debt most vulnerable to rate hikes, says McKinsey
Updated : June 19, 2018 02:21 PM IST
A 200 basis-point increase in interest rates could spark a sharp rise in the proportion of emerging market corporate debt issues at risk of default.
Following a decade of loose monetary policy and historically low interest rates aimed at boosting economic growth after the 2008-9 financial crisis, global central banks are either raising interest rates or signalling an end to accommodative policies
That is pushing many central banks in the developing world into raising rates too, with India for instance upping rates for the first time since 2014.