Major emerging markets (EMs) like Brazil and Russia could be at risk of a widespread credit crisis—that could impact the world's financial markets, experts warn.
ING Investment Management warned in March that banks and companies in some emerging markets could topple if their currencies remained under pressure and capital outflows continue.
"This pressure threatens to bring the fundamentally weakest countries into deep economic and political trouble," said M.J. Bakkum, senior emerging markets strategist at ING, in a research note.
"Brazil, Russia and Turkey are the most vulnerable. It is not impossible that serious corporate defaults happen or even that banks fall over in one of these countries. For the first time since 2002, we should consider the risk of contagion in the emerging world, with possibly implications for global financial markets."