2026 trend

Sovereign debt stress

Post-high-rate cycle: rollover, deficits, downgrades.

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After 2022-2024 with positive real rates, 2026 brings a rollover wave at higher cost. EMs with persistent primary deficits (including Romania) are exposed to spread pressure and downgrades. Indicators: CDS, rating outlook, primary deficit, average cost of debt vs. 10y yield.

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