Emerging Market Bond Markets Come Of Age

CFW has long signalled the increasing demand for emerging market corporate bonds (see The Emerging Market Corporate Bond Boom, CFW, 9 November 2009). Emerging market corporate bond issuance has risen 58%y-o-y in the y-t-d to US$68bn, but what is particularly interesting in the y-t-d is that local currency issuance made up 72% of the total US$68bn. We view the boom in local currency denominated bonds as a general illustration of the maturity of emerging markets. Furthermore, supply and demand factors are often mentioned to explain the boom: 1) the positive corporate local bond implications of an extension of sovereign debt

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