Macro Analysis /
United States of AmericaUS debt ceiling debacle puts EM at risk, but resolution remains likely
Even without arrears on US debt, uncertainty and other spending cuts could hurt global liquidity and EM growth prospects
In downside scenarios, any flight to safety benefit from lower US bond yields to be offset by wider EM risk premia
Though our base case is that debt ceiling related volatility will pass, the downsides are worth preparing for
