Egypt could be among EM’s biggest net sovereign debt issuers next year, Goldman says

Egypt, Saudi Arabia, Qatar, and Mexico are expected to be the biggest net issuers of sovereign debt among emerging markets in 2021, according to a Goldman Sachs report picked up by Reuters. The investment bank expects EM sovereigns to issue some USD 140 bn in debt as cash-strapped governments continue to look to the international debt markets to plug financing gaps. This year has already seen USD 145 bn of sovereign debt issued by EM governments, Goldman says.

A stronger appetite for risk next year could also drive up high-yield sovereign issuances to USD 60 bn in 2021, up from USD 45 bn in 2020. On the flipside, investment-grade debt sales are expected to see a slowdown to USD 80 bn next year from USD 100 bn this year, Goldman analysts said.