Man Group Warns of Contagion to European Firms From EM Defaults
- Potential ‘distressed debt supercycle’ may begin in EM: Man
- EM debt funds have suffered record outflows in 2022, firm says
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Man Group Plc is warning that a surge in distressed emerging-market sovereign debt may be contagious, posing a threat to companies from mature economies -- especially in Europe.
“We may be on the cusp of a distressed debt supercycle,” Santiago Pardo and Patrick Kenney, credit portfolio managers at Man GLG, wrote in a note on Thursday. “But unlike in 2008, the crisis is likely to originate from EM, not DM.”