=> Dark clouds continue to rest over EM, we are eyeballing a 4% move here against Malaysia. => Almost 90% of short term debt in Malaysia is covered by FX reserves whilst two thirds come in the form of short term borrowing. => If the banking system continues to feel pressure via uncertainty from Chinese officials then we are going to see some real pain here. => The risk to our thesis is that uncertainty around EM begins to fade, a scenario we unfortunately think has passed the point of no return in the global economy. => Good Luck
Thanks