Level of emerging market debt issuance hits new high

Belarus raised $600m in a five-year bond offer in its first ever foreign-currency sovereign bond. It is one of many emerging market governments to take advantage of investors' returning risk appetites.

Argentina is looking to return to the capital markets for the first time since the country's default in 2001 by selling a new $1bn bond this year, and Angola has received credit ratings to pave the way for a planned sale of bonds.

Emerging market debt issuance has climbed to near-record amounts in a new trend demonstrating a shift in the perception of risk as developed economies were hit hardest by the financial crisis. Many emerging market countries have lower debt-to-gross domestic product ratios, making their returns more attractive to investors.

Emerging markets debt trading volumes stood at $1551bn in the second quarter of 2010, according to a report by EMTA (Emerging Markets Trade Association). This represents an increase of 57%, compared to second-quarter 2009 volumes of $985bn and an 11% increase from the first quarter.