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Coronavirus Pushes Some Emerging Markets to Brink of Default

An unprecedented withdrawal of capital from emerging markets is threatening to create a wave of debt defaults as governments struggle with the double whammy of falling oil prices and the rapidly spreading coronavirus outbreak.

As investors fled emerging-market bonds in recent weeks in favor of haven assets, bond yields for the most vulnerable economies have skyrocketed. In one example, the yield on a dollar-denominated Angolan government bond maturing in November 2025 jumped to nearly 30% on Friday, from under 7% at the beginning…

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