## Figure 1.12. Emerging Market Economies: Asset Prices and Fundamentals

## Source details

**Canonical URL:** [Figure 1.12. Emerging Market Economies: Asset Prices and Fundamentals](https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-12.pdf)

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- [Markdown version](/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-12.pdf.md)
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### 1. U.S. Rates and Emerging Market Spreads (May 22, 2013 = 0)
- Panel description: Cumulative basis point change; May 22, 2013 = 0.
- Finding: Emerging market assets were hurt during the taper tantrum in May 2013 as higher U.S. real yields did not signal higher U.S. growth.
- Key series referenced: U.S. 10-year breakeven inflation rate; U.S. 10-year real yield; EM sovereign spread; EM corporate spread.

### 2. U.S. Rates and Emerging Market Spreads (Nov. 7, 2016 = 0)
- Panel description: Cumulative basis point change; Nov. 7, 2016 = 0.
- Finding: This time is different: a brighter U.S. outlook and reflation support the assets of emerging market economies.
- Key series referenced: U.S. 10-year breakeven inflation rate; U.S. 10-year real yield; EM sovereign spread; EM corporate spread.

### 3. Current Account and Foreign Reserves Adequacy, Change 2012 to 2016
- Panel description: Change 2012 to 2016.
- Finding: Emerging market external balances have improved since the taper tantrum, reinforcing positive financial market sentiment.
- Indicators shown: Current account balance (percent of GDP); Reserve adequacy (percent of ARA metric).
- Legend classification: Both improved; One improved; Both worsened.

### 4. Emerging Market Economy Corporate Leverage, 2007–16
- Panel description: 2007–16 (Debt to equity, percent).
- Finding: Emerging market corporate leverage has moderated but still remains elevated, especially in Latin America.
- Series scale indicator examples shown in graphic: 70 90 110 130 150 170 190 210 230.
- Countries displayed: Brazil; Chile; Colombia; Hungary; India; Indonesia; Malaysia; Mexico; Russia; South Africa; Turkey; Poland.

### Notes and definitions
- Note: ARA = Assessing Reserve Adequacy; EM = emerging market.
- Sources: Bloomberg L.P.; Haver Analytics; IMF, World Economic Outlook database; JPMorgan Chase & Co.; S&P Capital IQ; and IMF staff calculations.

*Source: figure1-12 (PDF).*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-12.pdf_