Finet APP learned that JPMorgan expects that despite the turbulence caused by the November US presidential election and escalating tensions in the Middle East, the bond issuance volume in the emerging markets of Europe, the Middle East, and Africa (EMEA) will reach a record high this year.

Data shows that as of 2024, the EMEA emerging market bond issuance volume has reached $253 billion. JPMorgan predicts that this year, the bond issuance volume in EMEA emerging markets will break the record set in 2020 of $265 billion. Stefan Weiler, head of JPMorgan's EMEA Debt Capital Markets, said that considering this year's second-highest issuance volume in history, "I expect that by the end of the year, the bond issuance volume in EMEA emerging markets may set a new historical record".

The issuance of emerging market bonds has been partly driven by concerns about the US presidential election, with issuers rushing to complete transactions before fluctuations in borrowing costs for US government bonds and emerging market borrowers occur.

Data shows that global government and corporate bond issuances have increased by 59% to $507 billion so far this year, with about half coming from Europe, the Middle East, and Africa, primarily including Saudi Arabia, Poland, Romania, and Turkey. Ukraine, Zambia, and Suriname have completed debt restructuring, while Ghana and Sri Lanka are close to completing similar measures, supporting the demand for high yield bonds as these countries have emerged from a wave of sovereign debt defaults following the pandemic. In addition, the Maldives recently reached a two-year extension on currency swap agreements with India to strengthen its foreign exchange channels, avoiding the potential default of Maldivian bonds.

Stefan Weiler said: "There is particularly strong demand for the CSI 300 high beta bonds, as investors are eager to secure high returns. We are currently experiencing a very healthy primary issuance market, where abundant oversubscribed orders allow many issuers to price new shares flat or at fair value."

It is worth mentioning that, with the stabilization of the Turkish economy boosting investor sentiment, there is particularly strong interest from investors in Turkey. In September, Fitch Ratings raised its credit rating for Turkey for the second time in six months, citing continuous improvement in external buffers and strong growth in forex reserves. Stefan Weiler stated that Turkey may be the hotspot of this year, as several corporate borrowers successfully entered the international debt capital markets for the first time.

The demand for emerging market bonds comes not only from funds specializing in such bonds, but also from other investors whose risk perception has improved. Stefan Weiler stated: "As funds that left the emerging markets due to rising US interest rates are starting to return, the yields in emerging markets are becoming more attractive with the decline in US rates." "Low interest rate trajectory will support the demand in 2025, and we also hold a very optimistic view for next year."