Carried off

Choppy days are back in emerging markets. Rising global interest rates are sap-ping the carry trade that has powered high-yielding cur-rencies and local emerging market bonds over the past four years. The crunch began late last month in Iceland - not usually considered an emerging market although it has many emerging marke-tlike features. Now it has spread further afield. The Turkish lira and Brazilian real have fallen by 4% each over the past week; others have suffered too. The fear is that an ...