Clouds loom over horizon for emerging market bond issuers

摘要

In the aftermath of Russia's 1998 financial crisis, Brazil's 1999 devaluation and Asia's restructuring, the international bond and loan markets were closed for many emerging market (EM) issuers. But by late 2002, the financing tide turned back in their favour. With plunging global interest rates and a shortage of high yielding paper due to a dearth of M&A activity, investors embarked on a global hunt for yield. Coupled with improving fundamentals in most EM countries, this meant that, despite their chequered recent history, EM issuers were enjoying broad access to international financing at very attractive rates by 2003.