JPMorgan Slashes EM Corporate Debt Issuance Forecast By A Third

• Investment bank JPMorgan slashed its forecast for developing world corporate debt issuance by a third on Monday, the latest sign of the economic pressures poorer countries are now facing.
• The amount of bonds emerging market companies and governments have been able to sell this year has plunged as surging global borrowing costs have left many either unwilling or unable to tap the international markets.
• "We do not anticipate a strong rebound in issuance in the foreseeable future," JPMorgan added, saying that a $260 billion total would be the lowest amount issued by EM firms in a year since 2015.
• Emerging markets have seen one of their biggest ever sell-offs this year as the spike in global inflation, the Ukraine-Russia war and a sharp slowdown in China's economy have all taken their toll on sentiment.
• Emerging market governments meanwhile have sold a combined $67.5 billion worth of debt so far this year, down $60.4 billion on last year's total, analysts at Morgan Stanley calculate. Latin America was also cut by 34% to $41 billion.
• It means the next few months will be crucial for those still looking to plug financing caps. Historically, September is one of the busiest of the sovereign debt calendar as finance ministries finalise their annual borrowing and start to look ahead.

(Source: Reuters)