EM companies

The fundamental outlook for Emerging Marketsis not as negative as perceived.

Emerging Markets Refinancing Cost: Reality Is Better Than Perception

The rapid rise in US Treasury yields has led to concerns about the fundamental outlook for emerging markets (EM). In particular, investors fear that higher risk-free yields will translate into unsustainably high borrowing costs for EM companies. While analysts from Julius Baer acknowledge the headwind for the developing world, they also believe that perception is generally more negative than reality.