Gap Opens For Frozen High-Yield Emerging-Market Dollar Deals

BB-rated African sovereigns may consider tapping debt markets
Many frontier markets have been priced out of USD bond deals

WATCH: Obligations to pay back maturing dollar debts are pushing some of the riskier sovereigns to look again at global bond markets, despite double-digit borrowing rates. Sydney Maki reports.Source: Bloomberg

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By Colleen Goko-Petzer and Yinka Ibukun

July 16, 2023 at 12:00 PM UTC

Updated on

July 17, 2023 at 11:34 AM UTC

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The waiting game for some of the riskier emerging-market borrowers is coming to an end.

With higher interest rates appearing locked in for longer globally, incentives to wait for better deals are evaporating. Meanwhile, obligations to pay back maturing dollar debts are pushing some of the riskier sovereigns to look again at global bond markets, despite borrowing rates rising to double digits.