Having written before about the growing signs we are upon a new default cycle (see, for example, post here http://trueeconomics.blogspot.ie/2015/12/301215-us-junk-bonds-heading-into-new.html), it is only fitting that I should highlight the latest article from Carmen Reinhart in which she talks about default 'waves' or cycles: https://www.project-syndicate.org/commentary/sovereign-default-wave-emerging-markets-by-carmen-reinhart-2015-12#d0X1sQB3KuUHlp7A.99.
Reinhart says that "From a historical perspective, the emerging economies seem to be headed toward a major crisis. Of course, they may prove more resilient than their predecessors. But we shouldn’t count on it."
I can add, either that, or count on a new wave of 'competitive devaluations' or 'currency wars' and forget about any 'normalization' in the interest rates.