Financial markets face many challenges. Your boss will be giving a speech at the company's annual meeting. Hundreds of senior managers will be attending. She has tasked you with providing detailed research so that she can address these managers and answer a burning question: What is the biggest crisis facing financial markets right now?
Your boss is under pressure to do a good job. She is relying on you. In a conversation with her, she suggested two crises to consider: A possible rout in the bond market and a credit crisis in emerging markets.
Here are some ideas for your project:
How much money has been borrowed in the energy sector by smaller companies hoping to capitalize on the oil market in the last two years?
When will these borrowings come due?
How much money has been borrowed in the junk bond sector?
Which industries are the top offenders?
Which banks/lending institutions are at greatest risk?
How much money do the BRICS owe?
To whom do they owe it?
What is your best estimate of the likelihood of these funds being paid back?
After amassing the data, which of the two crises identified by your boss is more significant? What advice or solutions might she provide in her speech?