Emerging Markets Shift to Euro Debt Amid US Dollar Review
Borrowers in the emerging markets are tapping into euro bonds at a much faster rate since a decade as they review the US dollar’s decline. Traders are capitalizing on the rising demand for the euro and the broader diversification moving away from the US dollar. The development is being supported by demand for debt as the quality of the euro-denominated bonds looks attractive to investors. “If you have an ambition to issue in euros, this is the time to do it,” said Stefan Weiler, Head of Debt Capital Markets at JP Morgan. Apart from the US, Weiler also oversees the debt markets of Europe, the Middle East, and Africa. “Borrowers have been noticeably more active in diversifying and exploring also some niche markets,” he said. Euro debt is in an advantageous position as the US dollar has dipped 9.5% year-to-date. Also Read: China Invites 30 Countries to Discuss De-Dollarization at SCO Summit US Dollar Under Pressure as Euro Debt Gains Source: Shutterstock Although the euro-denominat...