Fear of Biden Chill Adds to Motives for Eurobond Flurry
- Some nations quick to sell before Biden ‘stress’: Dergachev
- EM countries and companies tap markets after risk-on rally
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There’s a pattern emerging in the latest Eurobond sales from the world’s developing economies -- they’re mostly from countries that may not fare so well when Joe Biden enters the White House.
In the past week, Russia, China, Hungary and several companies from the Middle East have tapped international capital markets, ostensibly to lock in borrowing costs before yields and price swings increase next year. The average yield on emerging-market dollar bonds fell to a record low this week, according to Bloomberg Barclays indexes.