$100 Billion of Debt From Emerging-Market Nations Is Now Distressed
- Nations with over $100 billion of bonds now in distressed zone
- Ecuador and Zambia are seen as the most vulnerable countries
This article is for subscribers only.
The bonds of emerging-market nations are entering distressed territory at an alarming rate as the soaring dollar raises the prospect of government defaults.
Fifteen nations with more than $100 billion of Eurobonds outstanding now have average spreads of at least 1,000 basis points over U.S. Treasuries, which many investors consider to be the threshold for debt to be classed as distressed. And that doesn’t even include Lebanon, which defaulted this month, and Argentina, which has begun restructuring talks with bondholders.