Bond Sales Hit Record as Emerging Markets See Year of Risks
- Mexico drives $24 billion issuance spree with blockbuster deal
- Many junk-rated borrowers remain shut out of primary market
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Developing-nation borrowers are rushing to sell debt, taking advantage of increased appetite for new bonds to lock in costs as traders continue to flip-flop over when the Federal Reserve will begin lowering interest rates.
Mexico was first off the block, kicking off the year with its largest ever bond sale. Hungary, Slovenia, Indonesia and Poland quickly followed. In just four days, emerging-market governments and companies closed 20 deals worth $24.4 billion, the busiest start to a year on record for dollar- and euro-denominated debt issuance out of developing nations, according to data compiled by Bloomberg.