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default rates

M&G Panoramic Outlook: Emerging market corporate bonds – falling default rates and high yields. Too good to be true?

There are a lot of misconceptions about defaults in emerging market (EM) debt. Too often, EM corporates are either considered ‘serial defaulters’ compared with their developed market peers, or seen as a single and homogeneous geography. In reality, default rates follow economic cycles, and having a regional, if not country, approach to default risk remains paramount due to different jurisdictio…

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Default Rates – Where Do We Go From Here?

Moody’s this week published its December 2006 default report showing a fall from 1.8% to 1.7% marking its fifth consecutive annual decline and its lowest year-end level since 1996. Accommodative monetary policy, high levels of liquidity and a willingness to come to the aid of companies in financial difficulty has helped keep rates at historical lows. Worldwide in 2006, a total of 27 Moodys rate…

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