Investors Rush Into Expanding Emerging Market Debt

The video discusses the growing demand for diversified assets in emerging markets, focusing on sovereign and corporate issuance trends. It highlights significant transactions from countries like Argentina and regions like the Middle East, driven by low oil prices. The discussion also covers investor preferences for high yields and market stability, with projections for future issuance and historical context, including the impact of Brexit.

Which countries have set records for large transactions in the sovereign space?

• Turkey, Saudi Arabia, and Indonesia

• South Africa, Russia, and Mexico

• Argentina, Qatar, and Abu Dhabi

• Brazil, India, and China

What is the expected trend in corporate borrowings in emerging markets?

• No change expected

• Stagnation due to economic instability

• Increase due to a large number of maturing bonds

• Decrease due to high interest rates

Why are emerging markets attractive to investors?

• Low yields and high risk

• High yields and stabilized fundamentals

• Lack of investment opportunities

• Unstable political environments

What has driven the massive jump in sovereign borrowing this year?

• Decreased demand for bonds

• Jumbo transactions from the Middle East and Argentina

• Increased oil prices

• Economic recession

What assumption is made about future oil prices in relation to borrowing trends?

• Oil prices will remain range-bound

• Oil prices will rise above $100

• Oil prices will be highly volatile

• Oil prices will drop below $50