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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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To: Elroy Jetson who wrote (870)6/11/2018 8:23:07 AM
From: elmatador   of 13800
 
Almost half of the increase in external debt of emerging market economies corporates excluding China and Hong Kong reflects intercompany debt (notably Brazil, Russia, South Africa and Argentina; red bars in Figure 4).
in the article link below

Corporate debt in emerging market economies (EMEs)
atradius.nl
Summary
Corporate debt in emerging market economies (EMEs) has significantly risen, outpacing earnings growth. This is raising concerns about corporate creditworthiness given an increasingly challenging economic environment. EMEs shock absorption capacity is stronger than previous periods of global market turbulence, but some sectors remain vulnerable.

Corporates that are highly leveraged, have borrowed externally in USD or have relatively low buffers are most vulnerable. These corporates are concentrated in Brazil, India, Indonesia, Russia, South Africa and Turkey.

Corporates operating in the energy, mining, construction (materials) and transport sectors are also exposed. Companies in the real estate sector should be watched as well, as they generally do not hedge their foreign currency exposure.

The way I understand this is:
Global economy foreign subsidiaries took advantage of the near zero interest rates to borrow from their foreign mother companies
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