Market fears EM debt pile-up, as defaults and downgrades loom

By Mariam Meskin
24 Aug 2020

As debt levels across emerging markets reach unprecedented highs, bankers, investors and analysts alike are beginning to worry about the potential implications on sovereigns in the post-pandemic world. The increased fear of downgrades, defaults and unwinding of stimulus packages is giving market experts much to think about.

The debt build up is a legitimate concern in emerging markets," said a Dubai-based head of DCM. "In the coming months, it looks like we’ll have a vaccine and an economic reopening – which is good, but that will trigger rising rates and inflation. So a lot of ...

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