Here's What Aramco's Bond Means for Emerging Markets: EM Insight

The video discusses the heavy supply of emerging market debt, particularly from the Middle East, and its impact on the market. It highlights significant deals, such as those by Saudi Aramco and Qatar, and examines the issuance of dollar-denominated bonds. The video contextualizes the growth of the EM market and analyzes pricing trends, noting that while spreads have narrowed, they remain above historical averages, suggesting potential for continued market rally.

Which countries were highlighted as major issuers of bonds in the first section?

• Germany, France, Italy, and Spain

• Qatar, Saudi Aramco, Egypt, and Turkey

• Brazil, India, China, and Russia

• USA, Canada, Mexico, and Brazil

What is the significance of the $190 billion mentioned in the first section?

• It is the total investment in the Middle East.

• It is the amount of debt issued by the European Union.

• It represents the dollar-denominated bonds from emerging markets.

• It is the total amount of euro bonds issued by the USA.

How does the second section describe the growth of the EM space?

• It has been fluctuating without a clear trend.

• It has been getting a lot bigger over time.

• It has remained constant.

• It has been shrinking over time.

What does the third section suggest about the current rally in the EM market?

• The rally has already reached its peak.

• The rally could still have legs and continue.

• The rally is likely to end soon.

• The rally is insignificant compared to past trends.

What was unique about the Aramco deal mentioned in the third section?

• It was a single A rated corporate that priced more like a AA.

• It was priced like a AAA bond but had cash flows of a single A.

• It was the largest bond deal in history.

• It was exclusively issued in euros.