BIS Sees Bond Risks as Emerging-Market Company Debt Matches GDP
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International borrowing by companies in some emerging markets now matches the output of their economies, leaving bondholders more vulnerable to interest rate or currency shocks, according to the Bank for International Settlements.
Borrowers from Brazil to China may need to refinance about $90 billion next year and as much as $130 billion by 2017-2018, economists Michael Chui, Ingo Fender and Vladyslav Sushko wrote in the BIS Quarterly Review. That may be challenging should the dollar strengthen and domestic economies slow, they said.