Bond Losses Seen as Emerging-Market Company Debt Matches GDP
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Investors in emerging-market debt have become more vulnerable to interest rate and currency shocks after corporate borrowing in some nations rose to match the output of their economies, according to the Bank for International Settlements.
Borrowers from Brazil to China may need to refinance about $90 billion next year and as much as $130 billion by 2017-2018, economists Michael Chui, Ingo Fender and Vladyslav Sushko wrote in the BIS Quarterly Review. That may be challenging should the dollar strengthen and domestic economies slow, they said.