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Emerging Markets Tap Swiss Francs for New Debt
30 Sep
Summary
- Emerging market borrowers are increasing bond sales in Swiss francs.
- They are diversifying funding sources and seeking higher yields.
- Switzerland's zero-interest rate policy makes its market attractive.
Emerging market borrowers are increasingly turning to the Swiss franc bond market. This shift is driven by a dual strategy of diversifying their funding base and exploiting the attractive yields available in Switzerland, which maintains a zero-interest rate policy.
Several of these borrowers are entering the Swiss franc market for the first time, signaling a significant expansion of their financing strategies. By tapping into this market, they aim to secure capital while navigating the global economic landscape.
This move reflects a broader trend of emerging economies seeking alternative and favorable financing options. The appeal of Switzerland's stable, low-interest rate environment provides a compelling opportunity for these markets to secure funds.
