The global credit markets received a jolt on Monday, when the Russian Central Bank increased its key interest rate from 10.50 percent to 17 percent in a single motion.
That action was taken as a result of the rapid declines the country is experiencing in their currency markets along with concerns over the financial viability of this commodity-focused economy.
Interest rate hikes of this magnitude are almost unprecedented and underscore the severe effects that oil producing nations are undergoing during this deflationary cycle.
The effects of these central bank policy changes and concomitant spread widening in other developing nations have put emerging market bonds under the microscope once again.
/www.benzinga.com/etfs/emerging-market-etfs/14/12/5084683/emerging-market-bond-etfs-feel-global-credit-crunch alt=Emerging Market Bond ETFs Feel Global Credit Crunch>Full story available on Benzinga.com
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