Frontier markets are facing a growing debt crisis: Debt levels of the 42 countries classified as “frontier markets” by the Institute of International Finance (IIF) have doubled over the past decade, reaching a record USD 3.5 tn, writes Bloomberg. The debt covers government, corporate, and household borrowing, with USD 200 bn due to be repaid next year.

Inflows are harder to come by: The US Federal Reserve is not expected to cut interest rates until at least mid-2024, which has dampened investors’ appetite for frontier-market debt. “Global rates are considerably higher, and the incentive to invest in these markets is challenging when you can get 4% or 5% in US Treasuries,” IIF Managing Director Sonja Gibbs said.

Other business headlines worth knowing about this morning:

  • Tesla has recalled almost all 2 mn of its cars for a safety fix.
  • Argentina just devalued its currency by >50% under its new libertarian president.
  • SBF ’s lawyer thinks he was a very, very bad witness on cross-examination.

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THE CLOSING BELL-

The DFM rose 0.1% yesterday on turnover of AED 287.52 mn. The index is up 18.1% YTD.

In the green: Al Salam Sudan (+6.4%), Ithmaar Holding (+4.1%) and Aramex (+3.8%).

In the red: Orascom Construction (-6.1%), Takaful Emarat (-5.8%) and Watania International Holding (-4.7%).

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