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Emerging Markets |
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Emerging Markets, from Angola to Zambia. If you are working on a new project or evaluating a prospective opportunity, this Emerging Markets background can help. Our personalized debt consulting services can help you find the market intelligence and defaulted debt supportive data you require.
Emerging market debt (EMD) is a term used to encompass bonds issued by less developed countries. It does not include borrowing from government, supranational organizations such as the IMF or private sources, though loans that are securitized and issued to the markets would be included.
Emerging Market Debt is primarily issued by sovereign issuers. Corporate debt does exist, but corporations in developing countries generally tend to borrow from banks and other sources, as public debt issuance requires both sufficiently developed markets and large borrowing needs. Sovereign issuance has historically been primarily issued in foreign currencies, either US Dollars or Euros. In recent years, however, the development of pension systems in certain countries has led to increasing issuance in local currencies.
EMD tends to have a lower credit rating than other sovereign debt because of the increased economic and political risks - where most developed countries are either AAA or AA-rated, most EMD issuance is rated below investment grade, though a few countries that have seen significant improvements have been upgraded to BBB or A ratings, and a handful of lower income countries have reached ratings levels equivalent to more profligate developed countries.