(Bloomberg) -- Developing-nation borrowers are raising more money in local markets than ever before, making them less vulnerable to moves in U.S. Treasury yields, according to Mirabaud Asset Management Ltd.
Local-currency bond sales in emerging markets this year exceeded $1 trillion, almost triple the amount raised in the same period last year and dwarfing the $160 billion in hard-currency issues, according to data compiled by Bloomberg. Domestic sales have increased almost five-fold in the past five years.
“The dependency on external borrowing in emerging markets has collapsed,” said Daniel Moreno, the London-based head of global emerging-market debt at Mirabaud. “The government and corporate sectors are less vulnerable to external shocks because they now finance themselves for the most part in their own currencies.”
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Sales in the Chinese renminbi accounted for more than half of local-currency bond sales, the data shows.
To contact the reporter on this story: Selcuk Gokoluk in London at sgokoluk@bloomberg.net.
To contact the editors responsible for this story: Dana El Baltaji at delbaltaji@bloomberg.net, Robert Brand, Srinivasan Sivabalan
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