Bond Risks Pile Up in East Europe Amid $34 Billion Debt Rush

A strong dollar, jumping global yields, sluggish economic growth and renewed inflation fears are putting investors from Poland to the Balkans on edge just as Donald Trump prepares to take over the presidency in the US.

In dollar terms, local-currency bonds from Hungary, Romania, Poland and the Czech Republic have all been among the 10 worst performers in emerging markets so far this year, according to data compiled by Bloomberg. Hungary stood out with a total negative return of 2.5% through January 10, followed by Romania with a 2% negative return.

Poland, Hungary and Slovenia kicked off the year with another rush in eurobond sales, bringing in a total of €6.5 billion ($6.6 billion) between them. Overall, EM issuance has increased 10% to $34 billion year to date, with other deals ranging from Saudi Arabia to Mexico.

Source: FINANCE