He now expects a debt epidemic. “We are on the brink of an emerging market default epidemic that will rival the debt crisis of the 1980s in size and scope,” He wrote in an op-ed in the Financial Times. “Rising interest rates by Western central banks, the fallout from the Covid-19 pandemic, soaring food and fuel prices due to the economic fallout of the wars in Russia and Ukraine, mismanagement and outright corruption are all contributing factors.”
iShares JPMorgan USD Emerging Markets Bond ETF EMB,
It’s down 16% this year.
Much of Newman’s comments were about how private sector investors should handle defaults, not the broader market or economic impact.
The difference this time around, Newman wrote, is China’s role in lending.
Newman said China has set up a debt trap to seize key assets around the world. “Unsurprisingly, when Sri Lanka found itself unable to pay its debts, China jumped into the trap and insisted on paying its debts, offering to trade the debt for further concessions and large tracts of land, and to provide additional cash to help the political class weather the storm,” he wrote.
Newman said international financial institutions, Western governments, “dumb” NGOs and international media would call on private sector creditors to offer favourable terms such as Sri Lanka. “Why do that,” he replied. “Unless debtors demonstrate the will and ability to reshape, and unless all creditors – including China and international financial institutions – agree to disclose their full claims and agree to negotiate a settlement on commercial terms, any restructuring will fail.”
It should be noted that Elliott is reportedly not one of the major private investors in Sri Lanka, and as of April, its ranking includes Fidelity Investments, Lord Abbett, T. Rowe Price, Payden & Rygel and SEI Investments,According to Bloomberg News. Official investors in Sri Lanka’s $35 billion debt include the Asian Development Bank, China, Japan, the World Bank and India, according to the Sri Lankan government.
today– Fed plans to start shrinking its $9 trillion balance sheet, by letting its bonds roll without reinvesting, starting Wednesday. A drop of $47.5 billion per month at the start of summer, the monthly rate rises to $95 billion once the white pants are tucked away.
The Institute for Supply Management’s manufacturing index, construction spending and job openings reports are all due at 10 a.m. ET. St. Louis Fed President James Bullard will speak at 1 pm and the Fed’s Beige Book will be released at 2 pm. The automaker will report its May sales throughout the day.
Atlanta Fed President Rafael Bostic, In an exclusive interview with MarketWatch, he said his suggestion that the central bank “pause” rate hikes in September should not be interpreted in any way as a “Fed put option” or a belief that the central bank will rescue the market. US Treasury Secretary Janet Yellen admits to CNN She’s in the wrong direction about inflation.
S&P Global SPGI,
The warning hit rival Moody’s’ MCO after plunging after guidance was suspended due to weak ratings business,
After the close, results from meme stock GameStop GME,
due, as well as pet supplies retailer Chewy CHWY,
Co-founded by GameStop Chairman Ryan Cohen. NetApp NTAP,
and Hewlett Packard Enterprise HPE,
Results will also be reported.
The stock index edged up ES00,
After the S&P 500 SPX,
A three-day winning streak ended on Tuesday.
Futures fell, while oil CL.1,
The stock market sell-off has a long way to go, said longtime bear John Hussman, president of Hussman Investment Trust.
“In extreme situations like this, it’s useful to remember that risk management is generous. While market progress at high valuations may make investors feel as though they are ‘missing out’ returns, these speculative returns will always be disappear throughout the market cycle,” he said.
These are the most active stock market symbols as of 6 a.m. ET.
asset management company,
customer relationship management,
Tesla CEO Elon Musk seems don’t like working from home.
Licensing disputes may result in L’s Elvis Themed Wedding Endsas Vegas.
The mouse is afraid, not the cat, But bananas.
Need to Know started early and was updated until the opening bell, but register here Send it to your email once. The email version will be sent around 7:30AM ET.
Want more of the day ahead?register barron dailya morning briefing for investors, including exclusive commentary from Barron’s and MarketWatch contributors.