Emerging Market Corporate Debt Flashes a Risky Signal as Costs Surge
- Emerging market firms face sky high costs in raising new debt
- S&P Global warns company defaults will continue to rise
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Debt markets are signaling a widening gap between emerging market corporate borrowers and their sovereign peers, amid mounting concerns over the ability of companies to refinance at higher rates.
While risk premiums on corporate and sovereign EM debt were similar at the start of 2022, investors are now demanding 72 basis points more from corporate issuers, according to Bloomberg indexes.