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Yield Mania Is Back as Emerging-Market Bond Sales Pick Up

  • South Africa issues record $5 billion, Abu Dhabi $10 billion
  • ‘It is just cheap to borrow now,’ says GAM’s Paul McNamara
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Emerging-market sovereign borrowers are returning to international debt markets as stimulus from central banks cuts borrowing costs and investors chase yields again.

South Africa’s biggest ever Eurobond offering and Abu Dhabi’s $10 billion blockbuster on Monday follow Kazakhstan and Pakistan announcing plans for new issues. Bahrain and the Islamic Development Bank are offering dollar-denominated Sharia-compliant bonds on Tuesday, and Ecuador said the same day that it will sell sovereign debt.