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Reassessing the risks in emerging markets
Journal of Risk Management in Financial Institutions,
10
(1),
74-77
(2017)
Abstract
This short paper reassesses the risks inherent in emerging markets. By examining causes of the sharp increase in volatility across emerging credit markets, the paper concludes that a combination of idiosyncratic and systemic risks continue to present significant vulnerabilities to developing economies. While idiosyncratic risks are reasonably diversified across the emerging markets complex, a pre–emptive tightening in US monetary policy could once again trigger a correlated weakening in local currencies, erode investor confidence and induce a surge in capital outflows.
Keywords: emerging markets; volatility; monetary policy; systemic contagion; feedback loop
The full article is available to subscribers to the journal.
Author's Biography
Richard Wise was educated at Cambridge University, graduating with a double first in mathematics in 1990. He worked at the regulatory forbearer of the UK Financial Services Authority, the Securities and Futures Authority, as a risk analyst before joining JP Morgan Chase in 1995. He has worked in various roles at JP Morgan including being an interest rate derivative trader in the London office prior to relocating to Japan. He has spent the last seven years in Japan building the market risk management function for Asia-Pacific. He is now in a global role heading risk management for the institutional equities business of JP Morgan.
Citation
Wise, Richard (2017, February 1). Reassessing the risks in emerging markets. In the Journal of Risk Management in Financial Institutions, Volume 10, Issue 1. https://doi.org/10.69554/VSYP9525.
© Henry Stewart
Publications LLP
Publications LLP