Skip to comments.Emerging market bond sales hit record high
Posted on 07/20/2014 9:24:09 PM PDT by Citizen Zed
Emerging and frontier market countries have borrowed a record amount of money in capital markets in the first half of this year, even as central bankers warn that debt market euphoria could be storing up trouble for the future.
International sovereign bond sales by emerging markets reached $69.47bn in the first six months of the year, a jump of 54 per cent on the same period in 2013.
The increase makes 2014 a record year for emerging market government debt issuance so far, according to data from Thomson Reuters. The figures do not include Chinese government debt, which is not issued in international markets.
In April, Greece attracted orders of 20bn for its first bond issuance since the countrys indebtedness triggered a crisis that threatened the eurozone. Cyprus returned to debt markets just a year after a banking collapse that left the island in need of a 10bn bailout.
Some fear, however, that when developed world interest rates start to rise, there will be a repeat of last years taper tantrum, when talk of winding down unconventional monetary policy led to a retreat from emerging market assets.
Last month the Bank for International Settlements, the bank for central banks, warned of the dangers posed by rising debt burdens around the world.
(Excerpt) Read more at m.ft.com ...
How much debt does this world need anyway?