A Refinancing Crunch Emerges - WSJ.com

The theme of over-inter-connectedness re-emerges...

A Refinancing Crunch Emerges - WSJ.com:
"Amid the rout in global markets, corporate debt in emerging markets plunged. The premium demanded by investors for such debt over U.S. Treasurys ballooned from a little more than two percentage points in late August to about nine currently, according to a J.P. Morgan index that tracks a broad group of corporate dollar-denominated bonds. Some individual countries are higher: A sub-index of Russian corporate debt carries a premium of 11 percentage points over Treasurys.

In other words, borrowing costs are prohibitive. The task of refinancing debt also is complicated by currency fluctuations, because companies have a mismatch between revenues in local currency and borrowings in currencies such as the dollar."