01781cas a2200241 a 4500 AALejournalIMF015544 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513502717 1018-5941 BD-DhAAL BD-DhAAL Chow, Julian. Stress Testing Corporate Balance Sheets in Emerging Economies / Julian Chow. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (18 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In recent years, firms in emerging market countries have increased borrowing, particularly in foreign currency, owing to easy access to global capital markets, prolonged low interest rates and good investment opportunities. This paper discusses the trends in emerging market corporate debt and leverage, and illustrates how those firms are vulnerable to interest rate, exchange rate and earnings shocks. The results of a stress test show that while corporate sector risk remains moderate in most emerging economies, a combination of macroeconomic and financial shocks could significantly erode firms' ability to service debt and lead to higher debt at risk, especially in countries with high shares of foreign currency debt and low natural hedges. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2015/216 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/216/001.2015.issue-216-en.xml IMF e-Library