BofA Predicts Surging Bond Sales in Emerging Markets

Bank of America Global Research anticipates that hard-currency sovereign bond sales from the Emerging Europe, Middle East, and African region will reach $109 billion this year. This will account for a significant portion of bond issuances in emerging markets, with governments in this region making up 65% of the total supply.

Bank of America Global Research projects that sovereign bond sales in hard currency from the Emerging Europe, Middle East, and African (EEMEA) region will surge to $109 billion this year. This anticipated increase reflects a major slice of the bond issuance pie in emerging markets.

The report notes that EEMEA governments are expected to comprise roughly 65% of this year's total emerging market sovereign debt supply. Last year, the region's bond sales reached $116 billion. Experts at Barclays have forecasted that bond supplies from this area may hit $75 billion in 2025.

Emerging market countries and firms have already issued bonds exceeding $55 billion this year. BofA pointed out rising risks for Romania's credit rating and concerns over Hungary's policy discipline impacting investor confidence. Globally falling interest rates are likely to boost bond issuance from lower-rated emerging market countries.

(With inputs from agencies.)