Emerging markets: Corporates fight off default mode

Emerging market investors who gorged on an increasing array of corporate debt products face uncertain times as companies’ balance sheets come under pressure. Default and recovery rates will vary greatly by country, writes Sudip Roy.

Loans market under stress

THIS YEAR MEXICAN glassmaker Vitro reaches its centenary. Sadly for the Monterrey company it will not be celebrating in style. Instead it is fighting for its future after announcing in late January that it had failed to make a payment of $293 million in derivatives contracts. The company also served notice that it did not intend to make scheduled interest payments on three bonds, leaving it potentially open to claims of $1.2

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