FEMB - Crunch Time For EM Sovereign Debt Restructurings
2024-03-08 07:00:00 ET
Summary
- A recent wave of emerging market sovereign defaults is getting closer to resolution, providing further support to the asset class.
- The past few years saw a surge in emerging market defaults as the global pandemic and Russian invasion of Ukraine compounded pre-existing debt vulnerabilities and policy mishaps in several countries.
- The primary market reopened for frontier markets this month with successful issuances from Ivory Coast, Benin and Kenya, which, even at higher rates than in the past, enabled the retirement of near-term debt.
By Kaan Nazli, CFA, CAIA
A recent wave of emerging market sovereign defaults is getting closer to resolution, providing further support to the asset class. ...
Crunch Time For EM Sovereign Debt Restructurings