“Emerging market companies are increasingly choosing to borrow in euros rather than dollars as the spread between the yield on 10-year US Treasuries and German Bunds has widened to its highest level since the fall of the Berlin Wall. In the first eight months of 2016, EM non-financial corporates issued $38.1bn of euro-denominated bonds and syndicated loans, surpassing the highest ever full-year total of $33.4bn in 2013, according to FT analysis of data from the Institute of International Finance encompassing 20 major emerging market countries.”
I’m reminded of all those who borrowed in US$ and who are being taken to the cleaners. Nothing new. I think of all the M’sian corporates who borrowed in yen in the 70s and 89s before the Plaza Accord.
But then US and Japan didn’t have a Le Pen around wanting to make France Great Again.