EM Corporate Bond Yields Fall 19 Basis Points, Beating US Peers as Hormuz Closure Lifts Energy Debt
Updated
Updated · Bloomberg · Aug 12
EM Corporate Bond Yields Fall 19 Basis Points, Beating US Peers as Hormuz Closure Lifts Energy Debt
3 articles · Updated · Bloomberg · Aug 12
Summary
Bloomberg’s EM USD Aggregate Corporate Index yield fell 19 basis points this month, driving the lowest borrowing-cost gap versus US corporates since January.
Energy-company bonds gained as the Strait of Hormuz closure boosted the sector, while some distressed issuers also rallied on expectations of restructuring progress.
US corporate bond yields compressed just 2 basis points, with higher Treasury yields and heavier new issuance limiting price gains.
The move underscores how global investors are rotating into higher-yielding assets, helping emerging-market company debt outperform US peers.