Now emerging market debt is emerging as a new risk..

First they say open up financial markets, move to full capital account convertibility etc., One of the advantages of this will be to allow domestic firms to borrow abroad, get cheaper funds, expertise an so on.

And now, we are hearing rising emerging market debt is the new risk. First is this IMF analysis in recent GFSR and second is this piece by bunch of econs.

IMF says:

Chapter 3 of the October 2015 Global Financial Stability Report studies the growing level of corporate debt in emerging markets, which quadrupled between 2004 and 2014. The chapter finds that global drivers have played an increasing role in leverage growth, bond issuance, and corporate spreads. Higher leverage has been associated with, on average, rising foreign currency exposures. The chapter also finds that despite weaker balance sheets, firms have managed to issue bonds at better terms as a result of favorable financial conditions. The greater role of global factors during a period when they have been exceptionally favorable suggests that emerging markets must prepare for the implications of global financial tightening.

The second piece says:

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