A Bond Market of Haves and Have-Nots for Emerging Nations
- Demand for new deals is huge, but only for best-rated names
- Spread between investment grade and junk is widest since 2002
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The international bond market has reopened for developing nations following last month’s turmoil, but only for the strongest among them.
From Israel to Saudi Arabia, Peru to Abu Dhabi, highly-rated governments have raised billions without a sweat. But their junk-rated cousins in emerging markets -- like Angola -- have had to hold off their plans amid market distress.