Emerging Markets Head For Record Bond Sales As Yields Plunge

Emerging-market borrowers are on course to sell more bonds than ever this year after yields hit record lows and developing economies rebounded faster from the credit crisis than advanced nations. End Quote

(1888PressRelease) October 05, 2010 - Governments and companies in developing countries including Vale SA, the world's biggest iron-ore exporter, and Korea Electric Power Corp., South Korea's largest electricity producer, borrowed $196 billion from July to September, the most for any quarter, according to data compiled by Bloomberg. Bond sales surged from $157 billion in the second quarter of 2010 as yields in developing countries slid to an all-time low of 5.4 percent on Aug. 23 from as high as 6.8 percent in February.

Emerging market borrowers from India's Rural Electrification Corp. to OAO Gazprom, Russia's largest company, are in the process of selling at least $13.6 billion of bonds, adding to the $521 billion issued so far in 2010, which is 15 percent above the same period last year, Bloomberg data show. More issuers will rush to the market to lock in the low rates while they last, according to Richard Wainwright, CEO at Clarkson Black Associates in Seattle.

"There's going to be more issuance for sure as long as interest rates in the United States continue to be low," said the Clarkson Black CEO before he concluded by saying "they'll pre-empt 2011 if they can."

Clarkson Black Associates is a Seattle based middle market Boutique Investment Banking and Advisory Firm offering specialist advice and services to both Private and Public companies.

Clarkson Black Associates team of Senior Investment Bankers have extensive experience and track record of servicing the need of Middle Market companies. Its philosophy is to work closely with Promoters of companies to create customized and innovative solutions.

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