Yet the mantra that emerging markets are insulated from a 1998 crisis because they no longer borrow in dollars is wishful thinking. The Bank of International Settlements fears some may be just as vulnerable now to Fed tightening because their companies and banks have tapped global capital markets like never before, leaving them at the mercy of a Fed-driven rate shock. “The deeper integration of emerging market economies into global debt markets has made [them] much more sensitive to bond market developments in the advanced economies,” it said.