Emerging markets shifting back to the shadows

viernes 29 de enero de 2016 10:41 GYT

* Bond volumes plunge to multi-year lows

* Supply and demand under pressure

* EM bonds tipped to become niche product

By Michael Turner

LONDON, Jan 29 (IFR) - Emerging market bond issuance has fallen to its lowest level in six years, sparking fears that after years of huge growth, the asset class is shrinking back to a niche product.

Just US$23.5bn of emerging market bonds have been issued so far in 2016, with more than a fifth of that coming from Pemex's US$5bn triple-tranche deal on Thursday, as whipsawing markets continue to take their toll on issuer and investor confidence.

This is the weakest start to a year since 2009, when only US$15.6bn of deals were printed in January, according to Thomson Reuters data.

CEEMEA has been hit particularly hard, clocking up just US$4.19bn of public deals in January - the lowest since 2002.

The asset class's troubles are not just consigned to faltering supply. The buyside has been retrenching too, with investors ranging from the leading institutional money managers to retail accounts all suffering big outflows.   Continuación...