Developing markets debt issue record volumes

Volumes of debt securities issued in developing markets (emerging markets) showed new peaks as investors recovered their interest to high security, but carry a higher yield, wrote „Financial Times“.
In the current year issued volumes reached their highest value since the beginning of keeping such statistics in 1962. According to Thomson Reuters, bond in the emerging markets since the beginning of the year reached the total volume of $ 352 billion. Which exceeds 45 per cent volumes of the same period last year, when these markets were not hit by the financial crisis.
In July – month, which traditionally is characterized by low activity for the summer holidays, new issues have reached a volume of $ 60 billion
Largest issuer of such securities during the month were China, a market with large volumes are out, and Poland and Hungary (for the first time since June 2008). Among the countries issuing large volumes of debt, still rank Brazil, South Korea, Russia and several Gulf states.
The increase of interest on the bonds according to bankers is a major factor brought the interest of investors. According to the index EMBI, drawn up by JPMorgan, the yield on sovereign bonds on these markets is about 2% to over U.S. bondove rating „A“.
As the analyst in developing markets by BNP Paribas Shayin Valley, from the viewpoint of investors have a sense to buy bonds of emerging markets such as insurance, since its last meeting of the G20 undertook to allocate the necessary resources of the IMF in order not enable the countries in transition to allow bankruptcy. „But such guarantees for U.S. corporate debt will“ commented the expert.

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Finance