Unsafe Harbor
Emerging Markets Are Slapped in Brazil Test
The country's turmoil underscores the risk in less-developed nations.
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Brazil’s latest crisis serves as an important test for credit investors.
Debt buyers piled into emerging markets at an accelerating pace this year.
But now, are they willing to keep ignoring the fragility of some developing markets just to earn a little extra yield? Based on the initial reaction to the latest news out of Brazil late Wednesday, perhaps not.