Emerging-market borrowers are tapping the euro bond market at the fastest pace in over a decade, capitalizing on the rising demand for diversification away from the US dollar.
The surge is being fueled by robust demand for developing debt, with non-dedicated investors playing a bigger role as credit quality improves. While euro-denominated bonds still account for a small share of total emerging-market supply, their volume is expected to remain high — both in absolute terms and relative to dollar-denominated deals.