The amount that developing-economy issuers borrow in the world¡¯s biggest debt markets is expected to slow as interest rates rise and extraordinary pandemic spending is scaled back, dragging bond sellers back down to Earth after a COVID-fueled rocket ride.
Governments and companies in emerging markets raised $745 billion in dollar, euro and yen bonds as of Dec. 7, making 2021 the second-best year for issuance in Bloomberg-compiled data going back two decades. But even with a flood of new deals coming as borrowers race to refinance while interest rates are still low, it¡¯s unlikely that this year¡¯s volume will top 2020¡¯s record of more than $771 billion.
From here, the trend line is stabilizing ¡ª or possibly pointing down.
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