You Know It’s A Global Debt Bubble When…

Thursday, March 30, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Mar 30, 2017

With analysts noting that markets are “taking the Fed’s tightening policy in their stride,” demand for emerging-markets debt is so strong that Bloomberg reports one of Asia’s poorest nations is mulling a debut dollar-bond sale… Papua New Guinea.

The southwest Pacific nation plans to raise $500 million in five-year bonds, central bank governor Loi Martin Bakani said Tuesday at the Credit Suisse Asian Investment Conference in Hong Kong. The country would join Mongolia among sub-investment grade issuers in 2017. Sales of high-yield bonds total almost $15 billion so far this year, according to data compiled by Bloomberg.

“There is strong appetite for frontier issues — and markets have taken the Federal Reserve tightening policy in their stride,” Stuart Culverhouse, chief economist at Exotix Partners LLP in London, said by phone. Issuers in the single-B tier — the second-highest in the junk rating scale — have found yields “are not prohibitively high for their financing needs,” he said.

The Rest…HERE

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