IIF sees EM’s vulnerability to rising global rates on the upswing

The Institute of International Finance stated that emerging markets are increasingly exposed to risks caused by rising global rates, a note from the organization said today.

Key highlights

Underlying vulnerability in EM to rising rates is likely higher than previous.

Majority of EM currencies have weakened as much, if not more, than in 2013, despite US yields increasing by less.

With EM across the board exposed to increasing rates vulnerability, Argentina could become the rule rather than the expection.