Worries over a debt overhang in emerging markets (EM) are mounting, especially as higher interest rates in the US entice investors to pull back from the search for higher yields overseas. A chunk of that debt has been issued through Eurobonds with EM banks playing no small role in building this market.
Eurobonds have now overtaken syndicated loans as the main form of financing for EM banks, according to a research note by Renaissance Capital, an investment bank specialising in the developing markets.
