Emerging markets debt trading rose in third-quarter 2009, EMTA reports

By Christine Van Dusen

Atlanta, Dec. 16 - Appetite for investment in emerging market debt grew in the third quarter of 2009, with trading volumes rising 19% year-over-year to total $1.123 trillion, according to a new report from industry trade association EMTA.

Trading in local markets instruments grew 1% from a year earlier, reaching $650 billion. Hong Kong led at $147 billion. Other countries with high volumes of trading included Brazil with $100 billion, Turkey with $53 billion, Singapore with $48 billion and Poland with $35 billion.

Eurobond volumes also grew in the quarter, the study said, rising 56% from a year ago to reach $458 billion. About half of that activity was in sovereign debt issues, with $251 billion changing hands.

Corporate bond trading rose 98% to $175 billion in the third quarter of 2009 from the same period of 2008.

The most frequently traded emerging-market eurobonds were issues from Brazil totaling $55 billion, Turkey totaling $46 billion, Russia totaling $42 billion, Mexico totaling $33 billion and Venezuela totaling $30 billion.

For the first time, Hong Kong instruments were the most frequently traded in the report, with $158 billion in the third quarter of 2009. Brazil followed, with $155 billion, down 24% from third-quarter 2008.

Turkey was next on the list, with $99 billion, down 14% from third-quarter 2008.

Other frequently traded instruments were securities from Poland ($59 billion), Russia ($57 billion), Mexico ($56 billion), South Korea ($55 billion), Singapore ($54 billion) and Argentina ($46 billion).

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