Pandemic-Stoked Bond Sales Set New Bar for Emerging Markets
Bloomberg
12/30/2020
Sydney Maki
(Bloomberg) -- Emerging-market hard-currency bond sales are heading for another big year in 2021 as governments and companies try to revive growth, though it will probably fall short of this year’s pandemic-stoked record.
Governments will borrow heavily for a second year to fund health-care and poverty relief measures, while pushing the investment needed to reflate their economies. Companies will borrow to cash in on that renewed growth, with loose monetary policy providing the liquidity they need.
“Our forecast assumes that financing conditions continue to be supportive for both investment grade and high yield,” Goldman Sachs strategists including Kamakshya Trivedi, Caesar Maasry, Danny Suwanapruti and Sara Grut wrote earlier this month. But, “funding needs come down as the cyclical recovery takes hold.”