EM carnage as future fear sets in

EM Scrabble Flickr 230x150
By Francesca Young
23 Sep 2015

Emerging market bonds were locked in a sell-off on Tuesday as the market fretted over the US Federal Reserve’s blame for EM forcing it to hold rates, poor data from China, and even the revelations around Volkswagen.

“Tuesday was horrendous,” said one EM syndicate official in London. “On Monday ADCB was pulled, and Colombia printed with a 30bp new issue concession. Even after paying 30bp, the bond closed Tuesday 15bp wider at 260bp over.”

Latin America and CEEMEA were hit across the board. Brazil bonds ...

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