{"id":548787,"date":"2022-08-22T04:00:03","date_gmt":"2022-08-22T04:00:03","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/22\/debt-distressed-emerging-markets-arent-going-to-be-issuing-a-lot-of-bonds-next-month\/"},"modified":"2022-08-22T04:00:03","modified_gmt":"2022-08-22T04:00:03","slug":"debt-distressed-emerging-markets-arent-going-to-be-issuing-a-lot-of-bonds-next-month","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/22\/debt-distressed-emerging-markets-arent-going-to-be-issuing-a-lot-of-bonds-next-month\/","title":{"rendered":"Debt-distressed emerging markets aren\u2019t going to be issuing a lot of bonds next month"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-09\"><\/a> <strong>It\u2019s going to be a quieter September than normal for debt-distressed EMs: <\/strong>Analysts expect junk-rated emerging markets to continue to shy away from international bond markets as they struggle with high borrowing costs and dwindling FX reserves, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-08-21\/junk-nations-risk-muted-future-for-debt-sales-as-liquidity-dies\">Bloomberg<\/a> reports. Morgan Stanley, Goldman Sachs and JPMorgan all have low expectations for EM bond sales in September \u2014 usually a busy month as issuers look to capitalize on the higher post-summer demand from investors rebalancing their portfolios \u2014 and have slashed their 2022 forecasts for EM issuance. \u201cFunding conditions should remain unfavorable for high yielders,\u201d said Marcelo Assalin, head of emerging-market debt at William Blair International. \u201cWe see very little activity in the primary market in that space in the near term.\u201d<\/p>\n<p><strong>Egypt is included in that list:<\/strong> Egypt is among <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/005f7bf8-8ca8-471f-ba41-596b2bb2a954\">a growing number of developing countries<\/a> whose bonds are trading at distressed levels, indicating a rising risk of default amid rising borrowing costs and falling reserves. Egypt hasn\u2019t issued fresh international debt since September when it pulled off a <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3bac1988-3ad3-472c-94b4-3f1bc54bb126\">USD 3 bn issuance<\/a> and has no immediate plans to sell new eurobonds.<\/p>\n<p><strong>But we could buck this trend: <\/strong>The Finance Ministry has started preparations to sell CNY-denominated bonds and is currently searching for bookrunners and investment banks to manage the issuance, Finance Minister Mohamed Maait <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4c4bc259-7d58-436e-b5c6-614c15b0e534\">told<\/a><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4c4bc259-7d58-436e-b5c6-614c15b0e534\">Enterprise<\/a> last week, without disclosing a potential timeline.<\/p>\n<div class='stock-ticker-panel'>\n<table class='table stock-ticker-table table-striped markets-table'>\n<tbody>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>EGX30 <\/strong><\/p>\n<\/td>\n<td>\n<p>10,340<\/p>\n<\/td>\n<td>\n<p>+2.4% (YTD: -13.5%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD (CBE)<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 19.09<\/p>\n<\/td>\n<td>\n<p>Sell 19.20<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD at CIB<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 19.12<\/p>\n<\/td>\n<td>\n<p>Sell 19.18<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Interest rates CBE<\/strong><\/p>\n<\/td>\n<td>\n<p>11.25% deposit<\/p>\n<\/td>\n<td>\n<p>12.25% lending<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Tadawul<\/strong><\/p>\n<\/td>\n<td>\n<p>12,555<\/p>\n<\/td>\n<td>\n<p>-0.5% (YTD: +11.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>ADX<\/strong><\/p>\n<\/td>\n<td>\n<p>10,083<\/p>\n<\/td>\n<td>\n<p>-0.7% (YTD: +11.9%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>DFM<\/strong><\/p>\n<\/td>\n<td>\n<p>3,420<\/p>\n<\/td>\n<td>\n<p>-0.4% (YTD: +7.0%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>S&P 500<\/strong><\/p>\n<\/td>\n<td>\n<p>4,228<\/p>\n<\/td>\n<td>\n<p>-1.3% (YTD: -11.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>FTSE 100<\/strong><\/p>\n<\/td>\n<td>\n<p>7,550<\/p>\n<\/td>\n<td>\n<p>+0.1% (YTD: +2.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Euro Stoxx 50<\/strong><\/p>\n<\/td>\n<td>\n<p>3,730<\/p>\n<\/td>\n<td>\n<p>-1.3% (YTD: -13.2%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Brent crude<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 96.72<\/p>\n<\/td>\n<td>\n<p>+0.1%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Natural gas <\/strong>(Nymex)<\/p>\n<\/td>\n<td>\n<p>USD 9.34<\/p>\n<\/td>\n<td>\n<p>+1.6%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Gold<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 1,762.90<\/p>\n<\/td>\n<td>\n<p>-0.5%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>BTC<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 21,539<\/p>\n<\/td>\n<td>\n<p>+2.0% (YTD: -53.4%)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>THE CLOSING BELL-<\/strong><\/p>\n<p><strong>The EGX30 rose 2.4% at yesterday\u2019s close<\/strong> on turnover of EGP 1.23 bn (34.8% above the 90-day average). Foreign investors were net sellers. The index is down 13.5% YTD.<\/p>\n<p><strong>In the green: <\/strong>Citadel Capital (+9.7%), Ibnsina Pharma (+7.7%) and CIB (+5.1%).<\/p>\n<p><strong>In the red: <\/strong>Egyptian Kuwaiti Holding (-1.1%) and E-Finance (-0.1%).<\/p>\n<p><strong>Asian markets are having a mixed start to the week:<\/strong> Shares in China and Hong Kong are comfortably in the green this morning while bourses elsewhere in the region are in the red, among them the Nikkei, the Kospi and the ASX. Stock futures indicate that last week\u2019s sell-off in Europe and the US will continue this morning as investors continue to fret about how far the Federal Reserve is willing to go to curb inflation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s going to be a quieter September than normal for debt-distressed EMs: Analysts expect junk-rated emerging markets to continue to shy away from international bond markets as they struggle with high borrowing costs and dwindling FX reserves, Bloomberg reports. Morgan Stanley, Goldman Sachs and JPMorgan all have low expectations for EM bond sales in September [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7210],"tags":[82,7106,115,72,119,122],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-548787","post","type-post","status-publish","format-standard","hentry","category-planet-finance","tag-bonds","tag-debt","tag-emerging-markets","tag-enterpriseam","tag-financial-markets","tag-planet-finance","wpautop","entry"],"acf":{"mongo_id":"32f64935-7601-4143-a667-8613a6b3c863","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[548768],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Debt-distressed emerging markets aren\u2019t going to be issuing a lot of bonds next month - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/08\/22\/debt-distressed-emerging-markets-arent-going-to-be-issuing-a-lot-of-bonds-next-month\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Debt-distressed emerging markets aren\u2019t going to be issuing a lot of bonds next month\" \/>\n<meta property=\"og:description\" content=\"It\u2019s going to be a quieter September than normal for debt-distressed EMs: Analysts expect junk-rated emerging markets to continue to shy away from international bond markets as they struggle with high borrowing costs and dwindling FX reserves, Bloomberg reports. 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Corporate debt on the other hand\u2026: Emerging-market corporate bonds are holding up against a wave of interest rate hikes around the world, faring better than high-yield debt and equities in the US, Bloomberg reports. The EM sell-off is being\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":547862,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/17\/the-2022-em-debt-sell-off-is-getting-serious-wire-services-warn\/","url_meta":{"origin":548787,"position":1},"title":"The 2022 EM debt sell-off is getting serious, wire services warn","author":"enterpriseam admin","date":"17 July 2022","format":false,"excerpt":"Default on the horizon? A record number of emerging markets are facing pressure as debt sell-off grows: Soaring inflation and rising US interest rates have sent investors fleeing emerging market (EM) countries this year, leaving \u201ca record number of developing nations\u201d facing possible default, according to Reuters. Taking into account\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":562904,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/10\/ftse-russell-index-inclusion-could-bring-usd-4-bn-into-egp-bonds-says-finmin\/","url_meta":{"origin":548787,"position":2},"title":"FTSE Russell index inclusion could bring USD 4 bn into EGP bonds, says FinMin","author":"enterpriseam admin","date":"10 June 2021","format":false,"excerpt":"The Finance Ministry is expecting an additional USD 4 bn in foreign inflows into Egyptian debt on the back of Egypt\u2019s inclusion in the FTSE Russell\u2019s new frontier-market sovereign bond index, Finance Minister Mohamed Maait said in a statement yesterday. The British index provider yesterday launched its Frontier Emerging Markets\u2026","rel":"","context":"In &quot;MARKET WATCH&quot;","block_context":{"text":"MARKET WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/market-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/149.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":548571,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/14\/forget-the-fed-whats-going-on-in-emerging-markets-could-be-more-important-for-some-bond-investors\/","url_meta":{"origin":548787,"position":3},"title":"Forget the Fed: What\u2019s going on in emerging markets could be more important for some bond investors","author":"enterpriseam admin","date":"14 August 2022","format":false,"excerpt":"Not all eyes are trained exclusively on the Fed\u2019s next move \u2014 bond investors are worried about a potential wave of defaults, writes the Financial Times\u2019 markets editor Katie Martin. Market watchers could be paying too much attention to whether or not the US Federal Reserve will continue to raise\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":548010,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/21\/the-incoming-em-debt-crisis-is-getting-worse\/","url_meta":{"origin":548787,"position":4},"title":"The incoming EM debt crisis is getting worse","author":"enterpriseam admin","date":"21 July 2022","format":false,"excerpt":"The number of emerging-market countries at risk of default is at a record high after Angola and Gabon became the latest to see yields on their sovereign bonds rise to distressed levels, Bloomberg reports. There are now 21 nations with yields 10% higher than US treasuries, a warning sign that\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":584535,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/02\/banking-turmoil-leaves-one-in-four-ems-shut-out-of-global-debt-market\/","url_meta":{"origin":548787,"position":5},"title":"Banking turmoil leaves one in four EMs shut out of global debt market","author":"enterpriseam admin","date":"2 April 2023","format":false,"excerpt":"Local currency EM debt fared better in 1Q","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/4\/30.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/548787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=548787"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/548787\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/548768"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=548787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=548787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=548787"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=548787"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=548787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}