EM debt trading volumes stood at US$1.413 trillion in the 2Q 2012, according to a report released on Aug 20 by EMTA, the trade association for the Emerging Markets debt trading and investment industry.
This compares with US$1.704 trillion in the 2Q 2011 (a 17% decrease) and US$1.582 trillion in
the 1Q 2012 (an 11% decrease). Local market instruments
turnover stood at US$987 bn in the 2Q2012, accounting for 70% of total reported volume. This compares to US$1.213 trillion in the 2Q 2011 (down 19%) and US$1.043 trillion in the 1Q 2012 (down 5%). Brazilian instruments were the most frequently traded local markets debt, at US$246
billion. Other frequently-traded local instruments were those from Mexico (US$216 billion),
and Russia (US$69 billion). Eurobond trading
stood at US$419 billion in the 2Q 2012 versus US$481 billion in the 2Q 2011 (down 13%) and US$531 billion in the 1Q 2012 (down 21%). 57% of Eurobond activity (US$240 billion) involved sovereign debt issues, compared to a 59% share (US$313 billion) of Eurobond activity in the previous quarter.
Corporate Eurobond trading stood at US$158 billion in the second quarter, accounting for 38% of total Eurobond activity. In terms of total trading volumes, sovereign Eurobond activity accounted for 17% of overall Survey volumes, while corporate trading accounted for 11%.
The most frequently traded individual EM Eurobonds during the first quarter included Russia
bond (US$16 billion in turnover), Brazil
bond (US$4 billion), Russia 2042
bond (US$4 billion), Argentine Pars
(US$4 billion) and Brazil 2024
Brazilian instruments Mexican instruments
were the most frequently traded instruments overall according to Survey participants, with US$298 billion in turnover.
were the second most frequently traded instruments in the EMTA report, at US$243 billion.
Third were Russian assets, at US$137 billion in turnover. This compares to US$117 billion in the second quarter of 2011, a 17% increase and a 6% increase on first quarter’s US$130 billion. Russian instrument trading
accounted for 10% of Survey volume.
Other frequently traded instruments were securities from Turkey
(US$71 billion) and Singapore