Saudi Bond Sale Pushes Emerging Market Issuances

The video discusses the record-breaking $25 billion dollar-denominated issuance from emerging markets, highlighting Saudi Arabia's $17.5 billion sovereign bond sale. It also covers $7.5 billion from corporate debt and $3 billion from high-yield companies. Despite the influx, EM bond spreads remained stable, indicating strong investor demand. However, factors like China's offshore yuan rate and rising interest rates in developed markets could affect this appetite.

What was the total dollar-denominated issuance from emerging market countries last week?

• $7.5 billion

• $17.5 billion

• $25 billion

• $10 billion

Which country had a significant sovereign bond sale contributing to the record issuance?

• China

• Brazil

• Saudi Arabia

• India

What was the reaction of investors to the large supply of EM bonds in terms of risk premiums?

• Investors demanded higher risk premiums

• Investors demanded lower risk premiums

• Investors did not demand additional risk premiums

• Investors withdrew from the market

Which factor is mentioned as potentially impacting the demand for EM debt?

• Decrease in oil prices

• China's offshore yuan rate

• Technological advancements

• Political instability in Europe

How might higher interest rates in developed markets affect emerging market debt?

• Increase demand for EM debt

• Decrease demand for EM debt

• Stabilize EM debt prices

• Have no effect on EM debt