The explosion of the BRICS stock markets has left them somewhat in the shadows. But for analysts from developing areas there may be other news for savers. Positive surprises. The reason is in the growth of the bond market of the companies of these countries. The secret? For those who work in the sector, it is the mix of solid balance sheets and returns that are tempting. Today, worldwide, the corporate bond market of emerging countries represents 12% of the total: 94 trillion dollars. In the face of a gross domestic product that contributes 36% to the world one, a proportion that discounts data from the International Monetary Fund it is destined to grow so rapidly as to give a glimpse of overtaking even within this year.
According to BNY Mellon emerging market corporate debt, the issuance of these bonds today is equal to one trillionalmost double the amount of bonds issued by emerging countries. 80% of these bonds have an investment grad ratingand, that is, they are financial instruments of medium-high quality, and yields of 6%. But keep an eye on the liquidity factor. Rodica Glavan of Bny Mellon a MF-Milan Finance he stated that his group tends to exclude issues with a nominal value of less than 300 million dollars and not to invest in those countries with an unstable political situation.
