Posted on 09/02/2008 5:40:58 PM PDT by TigerLikesRooster
Investors braced as emerging debt defaults rise
Mon Sep 1, 2008 11:17am EDT
By Sebastian Tong - Analysis
LONDON (Reuters) - Rising corporate debt delinquencies and the first sovereign credit default in two years are kindling investor concerns that more emerging market borrowers could fail to repay their debt.
As the global credit crunch trundles past its first anniversary, some firms and governments are faltering on rising refinancing costs and heightened investor risk aversion.
Seychelles failed to service a privately placed 55 million euro note last month and now teeters on a default of its $230 million global bond due this October.
The tiny island-nation's debt woes have emerged as sovereign default risk premiums for Argentina, Ecuador and Pakistan soar.
"With the deteriorating global growth environment, you have to believe some countries may get into trouble," Angus Halkett, Deutsche Bank emerging markets strategist.
(Excerpt) Read more at reuters.com ...
Ping!
you thrive on disasters.
Well, there are more downsides than upsides these days.
Can you add me to your ping list, please? Thanks!
And if we're really unlucky, the U.S. will join that unhappy parade of debtors in chains...as it is not only the world's largest debtor, but we are utterly insolvent and nearing bankruptcy, if all the off-balance-sheet liabilities and guarantees for various loans and other obligations are counted in.
But hey, on the bright side: the whole Big Government charade will be exposed and then come crashing down.
The bad news: a lot of people are going to suffer, and we can be sure that it isn't going to be the folks in Washington.
Tiger...slow down take an asprin... or go get some green tea...you’re gonna burn up the bandwidth.
Calm down. I think our finances are a little bit better than Pakistan's.
Well, our *lawyers* are.
And our nukes are larger and more reliable too.
Cheers!
Thanks for the ping, Tiger. You and I both know what is lying around the corner w/ respect to ‘an economic slowdown’.
Part of it is also election(partisan) politics. Still, there are many who are in denial even when such politics are off the table. They are really what I worried about.
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