Emerging market corporate and sovereign defaults set to break records
Moody’s and Fitch Ratings say that emerging market defaults are increasingly likely to hit record highs, with Asia-Pacific corporates looking particularly vulnerable.
Asia-Pacific sovereign and corporate borrowers are at an increasing risk of default, which leaves regional institutional investors with the prospect of having to take sizeable markdowns to some of their debt investments.
On Wednesday (May 15) Moody's said that its global emerging markets Liquidity Stress Indicator (LSI) reached 23% in April. That is the weakest level on record and much higher than the long-term average of 19%. A higher percentage points to weaker liquidity and a g…
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