Potential for EM contagion overlooked - Lehman Brothers


Credit market turmoil caused by bad US subprime mortgages could be transmitted to emerging market economies through domestic bank lending - a "vehicle for contagion that has been overlooked", according to new research by Lehman Brothers.

Higher-than-anticipated delinquencies among US subprime mortgages have given rise to tumultuous global credit markets. However, emerging market economies appear to have been shielded from the worst of the crisis, due to their lack of exposure to repackaged US

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