Financial Times FT.com

EM bond spreads at record lows

By Joanna Chung in London

Published: February 6 2007 18:52 | Last updated: February 6 2007 18:52

Risk premiums on emerging market bonds on Tuesday were close to record lows as hopes of a credit rating upgrade for Brazil spurred another round of buying.

As bond prices rose, the risk premium on emerging market bonds, as measured by JPMorgan’s EMBI+ index, a market barometer, touched an intraday low of just 164 basis points over US Treasuries during trading. The lowest close for the index – 165bp over US Treasuries – was reached on Friday.

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