Stars align for negative NIPs in EM despite fundamental worries

Mexico, strong, strength, fist, LatAm
By Oliver West
17 Sep 2020

Emerging market bond demand appeared near boiling point this week as a slew of borrowers priced new debt through their curves and even high yielding credits were able to stretch to longer maturities. While market participants acknowledged it surely cannot get any better than this and that conditions show little connection to economic reality, they are struggling to see what could sour sentiment in the near term. Mariam Meskin and Oliver West report.

Issuers across EM have romped through September, firing another salvo of deals at investors this week. 

From Latin America, Mexico sold the world’s first sovereign bond directly linked to the UN’s Sustainable Development Goals (SDGs) and was able to land a good 7bp-8bp inside its euro curve. And ...

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