Anxiety of dollar pushing emerging countries to euro bonds

Busts in the emerging markets are on their way to the euro -denominated bond market in more than a decade, which benefits from growing demand for diversification away from the US dollar. This increase has strengthened the strong demand for the debt of developing countries, with the growing role of investors who usually do not assign their investments to this market, in light of improving credit quality. Although the euro -denominated bonds still represent a small part of the total problems of emerging markets, their size is filtered for survival high, either in terms of absolute value or comparing the peer in dollars. “If you are planning to issue euro bonds, this is the right moment. Borrowers have clearly become more active in diversification and exploring specialized markets,” said Stefan Viller, head of capital markets at JP Morgan for the Central Europe, the Middle East and Africa in London. The dollar index fell 8% this year, in light of the return of money managers to consider their major exposure to US assets, with Trump’s customs policies and the attacks on the federal reserves in market fluctuations. There are increasing indicators about the decline in demand for the dollar, while low -scoring rates against currency fluctuations show that there is room for further decline. Standard versions of emerging markets have had companies and governments selling developing economies worth 89 billion Euro -denominated bonds this year until July 18, which is the highest number for the same period since 2014, according to the data collected by “Bloomberg”. Government publications alone exceeded the total number of which was issued in 2024. Although most of the publications came from Eastern Europe, where Poland and Romania together formed 21 billion euros, other borrowers from Chile, South Korea and China have entered the market in recent months. In the emerging economies of Europe, an average candidate in the presidential election in May led to the restoration of Roman bonds, which enabled the country to implement its third edition this year. As far as Bulgaria is concerned, it raised 3.2 billion euros after receiving an upgrade in the credit rating, powered by the coming next year at the euro area. Poland has benefited from the fastest economic growth in Eastern Europe to issue its first green effects in 7 years. “We have become more active in the search for opportunities outside the dollar bonds,” says Matthew Griffs, a PPM America. He added that he preferred the euro effects issued by ivory coast over his dollar counterpart due to the attractive difference in the yield. “He said:” We currently prefer to keep the euro at the expense of the dollar in terms of investment trend. “The euro -denominated effects performed better than the reference indicators, with a higher extent than its counterpart in dollars, after a week of release. Our expectations of the exceptional stage of economic growth in America remained an extra decline in the value of the dollar.” The relative value encourages the US economy investors to implement transactions based on relative value. For example, Bank of America prefers to bet on the high value of the Roman euro bonds owed in 2044, compared to a negative position of dollar bonds earned in the same year. Morgan, “Strategists believe that the euro -denominated effects issued by Poland, Morocco, Hungary and Mexico are the most attractive in their peers, because this year investors were strong to try to protect themselves from the fog that the American policies and the veteran in this veteran have, the CO chair in” “TC the TC -TC -Record Field for 4 decades. Diversification of borrowers away from the dollar, but it probably won’t weaken its dominance as these bonds remain part of the ‘JP Morgan’ index of emerging marching effects, which is why they are an essential component in the governor of investors. Cathy Hyperut, the head of the emerging markets of BGIM.