Thursday 06, September 2018 by Bloomberg

Default fears mount for 'BATS' as emerging-market pain deepens


Investor anxiety about a missed debt payment by one of the world’s largest developing nations is jacking up the cost of credit-default swaps from the "BATS"—Brazil, Argentina, Turkey and South Africa—to multi-year highs.

Analysts are taking note. Turkey and Argentina have "substantial" medium-term default risks as they’ll probably face recessions and rising political risks ahead of key votes, Kasper Bartholdy, a strategist at Credit Suisse in London, wrote in a note today.

Still, the nations have a long way to go before they’re put in the same category as Venezuela, which has racked up more than $6 billion in missed bond payments in the past year alone amid a worsening financial and humanitarian crisis.

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