From Papua New Guinea to Argentina, Bond Risks Are Going on a World Tour
- Investors desperate for yield willing to tolerate more risk
- Junk bonds now make up half of benchmark emerging-market index
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A serial deadbeat got investors to buy 100-year bonds, Sri Lanka’s latest debt sale was oversubscribed by 10 times and tiny Belarus is poised to issue eurobonds.
That’s just a small sampling of the risks emerging-market investors have started taking, even as yields remain relatively thin.