It seems that the TLTRO "rumor" was a sell the news buy the fact event, contrary to past occurrences!
Imagine you earn Brazilian Real and you bought a holiday home in the US. Your mortgage is from a US provider and you repay that debt in USD. What happens if the Real goes from 4 vs USD to 6? You need to earn 50% MORE Brazilian Real JUST TO SERVICE YOUR DEBT!
This is the global issue with a rising dollar, many EM countries have high US denominated debt and a rising dollar is hurting capital allocation.
Imagine you earn Brazilian Real and you bought a holiday home in the US. Your mortgage is from a US provider and you repay that debt in USD. What happens if the Real goes from 4 vs USD to 6? You need to earn 50% MORE Brazilian Real JUST TO SERVICE YOUR DEBT!
This is the global issue with a rising dollar, many EM countries have high US denominated debt and a rising dollar is hurting capital allocation.