What China’s Covid policy means for EM bonds, the EU-lephant in the room and the state of private credit

Send us Fan MailWill the easing of Chinese Covid rules help or harm emerging market issuers?How public sector issuers compete with a jumbo — and growing — borrower like the EUPrivate credit’s late bloomChina relaxed some of its zero-Covid policy this week, giving hope that this will stimulate Chinese growth. We explain why that will be a boost for beleaguered emerging market bond issuers and investors — and also why it might not.The European Union completed its gigantic funding task for the year this week with a €7bn bond sale. Other SSA issuers have had to navigate around it all year as this bond behemoth must come to the market often and in size. But next year, the EU — and other sovereign issuers — are likely to have to borrow even more. We explore what is driving this and what it means for the SSA bond market.Finally, we revisit the world of private credit and direct lending — sectors that have boomed in recent times — to see where managers are having the most success in raising cash from investors, following the successful closing of two new funds this week, and where they are struggling.