Amid the COVID-19 pandemic, the International Monetary Fund lowered its forecast for growth in emerging and developing economies for both 2020 and 2021. The way out wonâ€™t be easy. But not all is lost for emerging markets.
The low-interest-rate environment is a favorable backdrop for developed markets to retire pandemic-related debt. Central banks, meanwhile, may soon provide guidance on how they’ll start unwinding assets.
A confluence of factors over the decade since the global financial crisis has steadily nudged the corporate bond market down the investment-grade quality scale. The COVID-19 pandemic threatens to knock some issuers off the scale completely.