Tariff Chaos Is Roiling Emerging-Market Debt Tied to Oil
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Falling energy prices are squeezing the bonds of oil-producing companies and countries throughout the developing world, as investors brace for the knock-on effects of a global trade war with no end in sight.
Fund managers have been dumping the debt of oil companies operating in emerging markets: Among the hardest hit are the bonds of Mexican state oil champion Petroleos Mexicanos, which notched their biggest weekly loss since 2020 earlier this month. The notes from driller Gran Tierra, a Canadian company operating in South America, tumbled the most on record in April.