(July 30): A windfall of more than US$230 billion from the International Monetary Fund for emerging and developing nations is luring investors into the riskiest debt markets. “Emerging markets don’t have the Fed, but they do have the IMF,” said Thomas Christiansen, deputy head of emerging market fixed income at UBP. The funds are part of a US$650 billion package for IMF members. Junk-rated sovereign debt from emerging markets has trounced safer, developing-nation bonds this year, despite the Covid-19 resurgence and concerns over more expensive borrowing costs as U.S. rates rise. China has a 25% weight in the gauge following investment-grade bonds from emerging markets.
