When the banking system goes down the drain, the economy goes down with it (2008 is still very fresh in our minds). - Hélène Rey

When it comes to risky assets (and emerging markets debt is considered a risky asset) risk and specifically credit risk gets priced in the yields of bonds issued by this country. When times are good, investors seem to be optimistic and the price of risk is very low across all kinds of assets. But when liquidity starts to be withdrawn, the price of these risky bonds in emerging or low-income countries goes up.

China acts according to its interests, including on climate: short-term economic factors may dictate over anything else.

The risk of social unrest in many countries should not be underestimated.