Bill for Pre-Trump Debt Binge Worst for Emerging Borrowers: S&P
- Ratings firm subjects 3,000+ credits to crisis-era rates
- EM corporates face annual maturities of $200 bln through 2020
Bond Investing Strategies With Old Mutual's Mark Nash
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A sharp rise in global bond yields similar to that seen in the global financial crisis would leave companies in Asia and Latin America most exposed after they loaded up on cheap debt in the past decade, according to S&P Global Ratings.
That may be a “stress scenario,” but it has become particularly relevant since Donald Trump’s Nov. 8 election victory pushed up borrowing costs worldwide, the ratings firm said in a report Wednesday. Ten-year Treasury yields, used as a benchmark to set pricing on new bond issues, hit 2.5 percent this week for the first time since October 2014.