On April 12, stronger-than-expected US employment data was released. Many economists and dealers duly predicted the Fed would be forced to raise rates steeply, some suggesting a hike of as much as 3% this year to stave off inflation.
Those expectations hit both emerging markets and high-yield debt hard. In part, traders predicted some emerging markets borrowers were going to have difficulty rolling over debt in a higher interest rate environment. Others blamed the sell-off on hedge funds unwindi