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Seven nations have defaulted in 2023 so far. Will there be a spillover effect on global markets?

Seven nations have defaulted in 2023 so far. Will there be a spillover effect on global markets?
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Synopsis

A recent report from Moody’s states that bond default rates are at the highest since 1983. Sovereign default risks have materialised in some emerging and frontier market economies as the turning credit cycle and growing macroeconomic headwinds create complex challenges for these countries, compounding the problems they already face.

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6 mins read, Last Updated:
Equity markets and sovereign bond defaults are closely related. The world has been going through inflation and higher interest rates in the past year, which has hurt countries across the globe. While India is one of the few markets that has not seen a big fall, major ones like the US and Europe are undergoing a sharp pain. Even emerging-market indices are on a downtrend. A recent report from Moody’s says that bond default rates are at the

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