Is a debt problem brewing in emerging markets?

Having been spectators to the credit crisis that has gripped the developed world since 2008, debt problems now seem to be building in several major EMs. There are good reasons to think that the economic fallout may be less severe than in previous EM crises. But even so, the repercussions of the recent lending binge is likely to mean that default rates will rise and growth in a number of large EMs - including China and Brazil - will be much weaker over the coming years.