Swaps Created by Credit Suisse Bankers Hit a Wall in EM Rally

Bankers in the small but lucrative market for debt swaps are now struggling to complete deals.

Designed to help developing nations cut their debt burdens and protect the environment in a single product, the swaps are seeing potential borrowers hit the brakes, according to bankers and consultants interviewed by Bloomberg. With emerging-market bonds rallying, such deals often no longer make financial sense, they said. At the same time, some governments are skeptical of the environmental focus the swaps have, they added.