Government bond yields in China are higher than its Asian counterparts such as South Korea and Singapore and much higher than major developed markets.
With the onset of reforms, foreign holdings in China’s onshore bond (EMB) (PCY) market is gradually increasing.
Many leading bond index providers are still not including China’s onshore bonds in their benchmark indexes due to various regulatory and operational concerns.
In the third and final phase of bond (EMB) reforms that began after 2015, the substantial activities of the market were open to global investors.
The opening of China’s onshore bond market (EMB) (PCY) was a gradual process that included a number of cautious measures.
In March 2017, Citi’s fixed income indexes decided to include onshore Chinese bonds (EMB) (PCY) in its three government bond indexes.
China’s onshore bond market (EMB), consisting of locally denominated and issued bonds, is larger than the offshore bond market.
VanEck How fallen angels may complement high yield portfolios Income investors may want to consider fallen angels as a complement to their high yield bond allocations given their higher credit…
VanEck How the fallen angel sector exposure has made a difference The volume of fallen angel bonds in the market is increased primarily by deteriorating fundamentals of individual investment-grade bond…
VanEck Given these uncertainties, high yield bond investors may want to ratchet up the credit quality of their portfolios. Fallen angels can be a source of higher quality high yield…
VanEck Fallen angel high yield bonds were up 4.8% year to date through April 30, outperforming the broader high yield bond market which rose 3.9%.1 (This follows 2016’s strong performance which…
VAN ECK: In fixed income, investors have to deal with this more volatile environment, and we see four different ways they can go with it: Number one, you can shorten…
JAN VAN ECK: U.S. equities were affected because corporate earnings turned positive only when energy companies started recovering in the third quarter. In fixed income, high yield improved after investors…
According to Morgan Stanley, US high yield bonds (IGHG) (LQDH) generated a return of 14.4% in 2016.
The S&P 500 Energy Select Sector (XOP) (OIH) is trading at the highest PE ratio of ~32x relative to the other sectors based on EPS estimates for 2017.
Emerging markets have done well this year and should continue to attract investor interest around the globe. Latin America is leading year-to-date.
The Barbell strategy involves putting half your portfolio in defensive, low-beta sectors or assets and the other half in aggressive, high-beta sectors or assets.
Emerging market debt can be a great source of income potential in a diversified portfolio, provided you can manage it during a period of extreme volatility.
The VanEck Vectors EM Local Currency Bond ETF (EMLC) could be a good entry point after it took a hit following rising interest rates and volatility in the US dollar.
You have two options when it comes to investing in emerging market bonds—hard currency bonds and local bonds.