Total lending to emerging markets is now some $4.7 trillion, 74 % lent by EU banks

A

ASusilovic

Still uncertain as to the relevance of all the fuss over tottering Eastern European, South American or Asian economies? Uncertainty begone. Says JP Morgan’s Joyce Change, via Felix Salmon:

1. Total lending to emerging markets is now some $4.7 trillion.
2. 74 per cent of that was lent by European banks.
3. Both Austria and Netherlands have lent more than 50 per cent of their GDP to foreign developing nations.

QED: The EM corporate loan market is now five times the size of the corporate bond market.

http://blogs.reuters.com/felix-salmon/2009/06/08/emerging-market-debt-after-ecuador/
 
I'd be skeptical about these large estimates. The structure of the debt varies and, in fact, a large proportion of it (I think arnd 50%) was structured through local subsidiaries that don't have a legal call on the parent's assets. So it's really not that horrible...

Moreover, the Swedish FSA just did a stress test of the banks and concluded that they're OK. I am inclined to trust them in this. See the slides...
 

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Every market around the world has been pumped up with liquidity to prevent a meltdown, how anyone could believe that forcing markets up is a positive is beyond me. Trillions and trillions being pushed through the system. Because that's the way to fix a credit crisis.


:p
 
Quote from ASusilovic:

Still uncertain as to the relevance of all the fuss over tottering Eastern European, South American or Asian economies? Uncertainty begone. Says JP Morgan’s Joyce Change, via Felix Salmon:

1. Total lending to emerging markets is now some $4.7 trillion.
2. 74 per cent of that was lent by European banks.
3. Both Austria and Netherlands have lent more than 50 per cent of their GDP to foreign developing nations.

QED: The EM corporate loan market is now five times the size of the corporate bond market.

http://blogs.reuters.com/felix-salmon/2009/06/08/emerging-market-debt-after-ecuador/
More...

Still short?
 
Quote from S2007S:

Every market around the world has been pumped up with liquidity to prevent a meltdown, how anyone could believe that forcing markets up is a positive is beyond me. Trillions and trillions being pushed through the system. Because that's the way to fix a credit crisis.


:p
More...

Still short then?
 
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