Vanguard Total International Bond ETF

In this article, we’ll discuss some of the risks an investor must consider before investing in international bonds. Some of these risks are unique to this asset class.

International bond funds like the Vanguard Total International Bond Index ETF (BNDX) can have various investment styles determined by their stated choice of bond investments.

Japanese Prime Minister Shinzo Abe’s call for an early election worked in his favor. He called for a snap election to take advantage of his high ratings.

For Japan’s economy, the main struggle has been the low level of inflation. Japan’s inflation has been low for the past three decades.

According to news reports, Japanese Prime Minister Shinzo Abe could be calling for a snap election next month to capitalize on the increased approval ratings in August.

The BOJ’s (Bank of Japan’s) qualitative and quantitative easing (or QQE) programs and a negative interest rate are helping to slowly revive Japanese inflation.

This year’s theme for the annual Jackson Hole Symposium is “Fostering a Dynamic Global Economy.”

According to Bill Gross, the risk markets have been affected by various factors.

Negative bond yields in Japan and the Eurozone, coupled with very low federal funds rates in the United States, are part of why emerging market bonds and currencies have performed so well in 2016.

By early July, some $11.5 trillion in bonds were trading at negative rates, with 58% of the Barclays US Aggregate Bond Index1 trading below 1%.

From December 2014 to June 2016, funds for US equities have seen outflows of $176 billion. Bond funds have seen inflows worth the same quantum.