Publication:
How Emerging Market Companies are Withstanding Global Interest Rate Shifts

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dc.contributor.authorGandolfo, John
dc.contributor.authorMauro, Paolo
dc.date.accessioned2025-02-13T16:08:54Z
dc.date.available2025-02-13T16:08:54Z
dc.date.issued2025-02-13
dc.description.abstractThis International Finance Corporation (IFC) Research Note analyzes the cost of borrowing for firms in emerging and developing economies, changes in their debt structure, and indicators of indebtedness and profitability. It finds reasons for optimism on their resilience, while noting that vulnerabilities remain. In contrast to earlier periods of heightened macro volatility and Fed hiking cycles, emerging market corporate yields rose significantly but spreads over U.S. Treasuries remained stable. Moreover, there was a noticeable shift by emerging market firms toward local currency borrowing to eschew vulnerabilities from foreign currency denominated debt. As a result, interest coverage ratios for emerging market companies are still healthier than on the eve of the pandemic. Nevertheless, borrowing costs warrant monitoring because corporate debt levels remain high and, despite recent policy rate cuts in the United States and elsewhere, global real interest rates are projected well above pre-pandemic levels in the next few years.en
dc.identifierhttp://documents.worldbank.org/curated/en/099801102052537417/IDU1e8c44cb21f6b814489184a91dbd5ff0dc8a2
dc.identifier.doi10.1596/42807
dc.identifier.doihttps://doi.org/10.1596/42807
dc.identifier.urihttps://hdl.handle.net/10986/42807
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectECONOMIC GROWTH
dc.subjectDEBT STRUCTURE
dc.subjectCOST OF BORROWING
dc.subjectRESILIENCE AND VULNERABILITY
dc.subjectGLOBAL REAL INTEREST RATES
dc.titleHow Emerging Market Companies are Withstanding Global Interest Rate Shiftsen
dc.typeBrief
dspace.entity.typePublication
okr.date.disclosure2025-02-13
okr.date.doiregistration2025-04-14T11:59:07.657061Z
okr.date.lastmodified2025-02-05T00:00:00Zen
okr.doctypeBrief
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099801102052537417/IDU1e8c44cb21f6b814489184a91dbd5ff0dc8a2
okr.guid099801102052537417
okr.identifier.docmidIDU-e8c44cb2-f6b8-4489-84a9-dbd5ff0dc8a2
okr.identifier.externaldocumentum34453107
okr.identifier.internaldocumentum34453107
okr.identifier.report197053
okr.import.id6589
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099801102052537417/pdf/IDU1e8c44cb21f6b814489184a91dbd5ff0dc8a2.pdfen
okr.region.geographicalWorld
okr.topicMacroeconomics and Economic Growth::Economic Conditions and Volatility
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicFinance and Financial Sector Development::Strategic Debt Management
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.unitTreasury & Mobilization (CFIVP)
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