Last Updated October 14, 2008
The return of distressed debt
At the end of September, Seychelles announced it was defaulting on its US$800mn of external debt, in the first sovereign default for two years. Experts agree that more defaults are coming in EMEA sovereign and corporate debt, and some funds are poised to take advantage of distressed debt situations.
On September 30, the tiny archipelago of Seychelles, with a population of just 80,000, suddenly seized the attention of emerging market investors, when the government announced it was defaulting on its US$800mn of external debt.
