Fitch: Close Look at EM Corporate Bond Trading Reveals Liquidity Risks

April 16, 2015 1:11 PM

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(The following statement was released by the rating agency) NEW YORK, April 16 (Fitch) Investors in dollar-denominated emerging market (EM) corporate bonds face liquidity risks, according to a new Fitch Ratings report.

In the U.S., high-yield EM dollar-denominated corporate bonds trade far less frequently than their U.S. counterparts. Low trading frequency, along with high levels of country and industry concentration among the largest EM bonds, raises the risk of price volatility in periods of market stress. Lower...

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