Why Emerging Markets Are Rallying
There are a lot of reasons behind the sharp rally in EMs (SCHE). The prominent reason is that the GDP growth in many of these nations has improved in the last few quarters partially on the back of the rise in commodity prices like copper and oil.
One of the biggest trends in the global economy over the past two years is the reduction in manufacturing capacity in China (FXI) (MCHI).
Investors often ask us which of the two main bond market risks they should focus on—interest rate or credit. Our answer? Both—and the way they interact with each other.