Bonds
Emerging-Market Companies at Risk With $400 Billion Debt Due
- Refinancing grinds to slowest pace since 2011 as yields surge
- High-yield companies seen most at risk of default, bankruptcy
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Cracks are deepening for vulnerable emerging-market companies as global borrowing rates surge to the highest levels since the financial crisis, halting refinancing opportunities for $400 billion worth of debt maturities coming due in the new year.
As US Treasury yields soar to 15-year highs and borrowing costs skyrocket, companies from developing nations have managed to only rollover a tenth of what they need. What’s more, the struggle may be in its beginning stages only as refinancing challenges are likely to worsen once another $300 billion worth of corporate bonds comes due in 2025.