Financial markets haven’t set too many records so far in 2023. One exception is emerging markets debt.
You heard that right. Emerging market nations placed $39 billion in bonds during the first two weeks of this year, nearly half the total for all of 2022. Investors lapped them up. Mexico, for example, issued $2.75 billion in 12-year paper at a 6.35% interest rate on Jan. 3. The yield has slid to 5.5%, meaning the bonds are trading at 106% of par, reports Samy Muaddi, portfolio manager of the emerging markets bond strategy at T. Rowe Price.
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