“LONDON (Reuters) – New funds targeting debt issued by emerging market companies have helped push outstanding issuance past $1 trillion as investors chase high returns while sidestepping problems in developed economies.
Total volumes of debt issued by emerging companies are up tenfold since 2000 and the size of the market now rivals that for U.S. high-yield bonds. Investors are attracted by companies’ strong balance sheets and rising demand for consumer goods and financial services in most emerging economies.
Emerging corporate debt has also milked a general rush from ultra-low-yielding developed markets, with new funds springing up to service demand.
Of 87 emerging market bond funds launched in the past nine months, 33 are dedicated corporate debt funds, according to Lipper, a Thomson Reuters company. Another 17 have said they will invest in both corporate and sovereign instruments.”
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