BTC iShares J.P. Morgan USD Emerging Markets Bond ETF
How Will the Fixed Income Market Fare in 2019?
The US fixed income market saw a strong close to 2018.
Investment Opportunities in This Environment
VanEck CEO, Jan Van Eck, joins me today to discuss his macroeconomic outlook and also to talk about investment opportunities that he finds most interesting in the current environment.
Aggregated Approach to Emerging Markets: Can It Ease Volatility?
While local currency has better advantages to hard currency corporate and sovereign, a blended approach could provide optimal returns.
Hard Currency Debt Allocation: Better Choice in Volatile Market?
In the emerging market debt space, local currency debt has always been a favorite since it provides higher positive yields.
A Look at Business Development Companies as an Asset Class
A third consideration that combines the credit exposure with floating rate exposure is business development companies.
How Emerging Market Bonds’ Real Yield Helps Curb Inflation Risk
Real yields are nominal yields adjusted for inflation, which is often one of the greatest contributors to the nominal yield levels of emerging markets local currency bonds.
Why Should Investors Focus on Real Yield in Emerging Markets?
Real yields in emerging markets (or EM) have remained at compelling levels over the past few years.
Emerging Markets Offer Attractive Opportunities
Over the past decade, EM (emerging market) debt has delivered stellar returns compared to other fixed income categories, except high yields.
Analyzing Ray Dalio’s Top Buys in 3Q17
Legendary investor Ray Dalio has an optimistic view on the US market (SPX-INDEX) as well as on emerging markets (EEM).
The Role of Emerging Markets in Global Green Bond Issuance
Over the last ten years, the green bonds (GRNB) universe has expanded and diversified, holding 600 bonds from 24 countries in 23 currencies.
A Look at Bridgewater Associates’ Largest Holdings in 2Q17
Ray Dalio’s Bridgewater Associates has made large investments in various ETFs in 2Q17.
EM Corporates Offer Huge Opportunities and Better Profile
VanEck A Diverse and Growing Category The emerging markets high yield bond market has grown tremendously over the past 10 years, from $56 billion at the end of 2007 to $440 billion as of June 30, 2017.[2. Source: BofA Merrill Lynch.] In addition to growing in size, diversity within the category has also increased. Investors currently […]
How to Benefit from Emerging Markets Corporate Debt
VanEck Higher Yield and Lower Duration Compared to U.S. high yield bonds, emerging markets high yield bonds offered a 90 bps yield pickup as of June 30, 2017.[1.U.S. high yield bonds and emerging markets high yield bonds are represented by BofA Merrill Lynch US High Yield Index and BofA Merrill Lynch Diversified HY US Emerging […]
Can Fallen Angel Bonds Continue to Perform amid Uncertainties?
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.Source of all data unless otherwise noted: FactSet. Data as of March 31, 2017. Fallen angels are high yield corporate bonds that are originally issued with investment grade credit ratings, and […]
How Venezuela’s Social Crisis Is Threatening Growth
The social and economic crisis in Venezuela has resulted in food and medicine shortages, a crippled economy, record high inflation, and falling oil prices.
How Emerging Markets Reacted to the Fed’s Tightening Policy
Emerging markets are becoming increasing important in the global economy, as they account for about 75% of global output and consumption.
How the Green Bond Market Is Diversifying
Since the introduction of the first green bond in 2007, various emerging markets such as China and India are considering the green financing option.
The Economic Costs That Come with Climate Goals
Climate-related policies and a transition to a low-carbon economy require capital, and most countries are already burdened with high debt.
How Would the Fed’s Interest Rate Hike Impact the Bond Market?
The 30-year Treasury yield was close to its month high as of March 10, 2017, at 3.20% in anticipation of an interest rate hike by the Fed on March 15, 2017.
Investment Rationale for Emerging Market Bonds in 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.
Using a Barbell Approach to Limit Portfolio Volatility
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.
The New Year May Bring Opportunities in Emerging Market Bonds
Investors are stepping back into emerging market bonds after removing billions of dollars from emerging markets in 2016.
Structural Reforms Have Strengthened Emerging Markets
According to a recent BofA Merrill Lynch Global Investment strategy report, emerging markets are expected to grow at a modest pace of 4.7% in 2017.
How Fundamentals Boost the Case for Emerging Market Bonds
Negative bond yields in Japan and low Fed funds rates in the United States and the Eurozone were one reason emerging market bonds performed well in 2016.
A Case for Emerging Market Bonds
Since the US presidential election, emerging markets have bounced back as though the election never happened.
Is Emerging Market Exposure Still a Smart Move?
The demand for emerging market bonds improved when fear of rate hikes abated in 2016. Fundamentals are still favorable for emerging debt markets.
What Are the Prospects for Emerging Markets in 2017?
A strengthening dollar impacts the emerging bond market’s performance. Uncertainty started revolving around the performance of emerging market debt.
Impact of Volatility in Emerging Market Currencies
Donald Trump’s surprise presidential win and the rising dollar called for a sell-off in most emerging market currencies like Mexico and Turkey.
How Did Emerging Market Debt Perform in 2016?
In the emerging market bond space (PCY) (EMLC), high-yield bonds and local currency bonds outperformed hard currency sovereign bonds.
Why Was November Important for Global Financial Markets?
Trump’s unexpected presidential victory caused short-term uncertainty about markets and policies. His win reinforced a reflationary theme in global markets.
Do Emerging Market Bond Credit Ratings Affect Returns?
In recent years, emerging market (EMLC) (HYEM) ratings have improved considerably due to the strengthening macroeconomic framework as well as years of reforms.
Is Emerging Markets Debt Ripe with Yield Opportunities?
Although the chances of a Federal Reserve rate hike for December looks positive, this doesn’t stop the emerging market (EEM) debt from outperforming other asset classes.
Are Fundamentals Still Supportive of Emerging Markets?
Regarding gross government debt, emerging markets have positioned themselves better compared to developed markets.
Why Emerging Market Local Currency Bonds Are Looking Attractive
Emerging market economies have bounced back in 2016, delivering strong economic growth with improved fundamentals and better capital management.
Why Might Emerging Market Local Currency Debt Be a Good Idea?
Investors with higher risk appetites may want to shift their focuses to emerging market bonds, as most developed market bonds are trading at negative yields.
Are Yield Opportunities Flourishing in Emerging Market Bonds?
Emerging market (or EM) bonds (PCY) offer diversified exposure with higher yields compared to their developed market equivalents (IHY).
A Trump Presidency: What Are the Odds?
With Hillary Clinton leading Donald Trump in the polls before Tuesday’s US presidential election, the projected results are still uncertain. However, a Trump victory may not be good news for those invested in emerging markets.
Ray Dalio: Gold and Riskier Assets Could Become Attractive
Non-financial storeholds of wealth could gain popularity Based on his view expected return relative to risk is going to be bad in the foreseeable future, Ray Dalio has identified two investment avenues that he believes could become more attractive. Dalio suggests that we may see non-financial storeholds of wealth gain popularity. More money may flow […]
Looking to Local-Currency Emerging Market Bonds for Opportunities
In today’s context, emerging market bonds (IGEM) look like good opportunities for investors.
Oil Has Been Weighing Down Saudi Arabia
Oil is critical to Saudi Arabia. The country is the largest exporter of petroleum, with 18% of the world’s proven petroleum reserves.
Saudi Arabia Enters International Bond Market, Raises $17.5 Billion
On October 20, the government of Saudi Arabia raised about $17.5 billion in an international bond issuance, marking the emerging market’s first foray into the international bond market.
Russia Retaliates against the US for Imposing Sanctions
The Russian government expressed its willingness to get back at the US. The economy’s growth has been impacted by trade and economic sanctions.
Where to Spot the Right Investment Opportunities
On top of the world So which sovereign bonds do we prefer from an investment point of view? We like US Treasuries as a hedge against “risk-off” episodes, though yields are historically low and our overall view on the asset class is neutral. We also hold a neutral view of European sovereigns but prefer selected […]
Jeffrey Gundlach: Where’s the Bond Market Heading?
Gundlach observes that the two-year Treasury yield has bottomed out, while the five-year Treasury is also almost double its mid-2012 lows.
The Rally in Emerging Market Debt
Emerging markets’ nonfinancial corporate debt breached the $26 trillion mark in the first half of 2016.
Which EM Debt ETF Gives You Exposure to Investment-Grade Bonds?
IGEM gives you good exposure to investment-grade emerging market bonds. They’re less risky and add diversification benefits to your portfolio.
Why Emerging Market Bonds Outperformed in 2016
Emerging market economies have seen improved GDP growth in 2016, while developed markets are struggling to grow.
Is Emerging Market Debt Immune to Rate Hikes?
The Federal Reserve kept its key interest rate unchanged in its policy meeting this week while signaling a possible rate hike in December.
Emerging Market Debt Outperforms Other Risk Assets
While around 30% of developed market bonds (IHY) are trading at negative yields, emerging market debts (HYEM) are offering attractive returns.
Headwinds Are Affecting Many Emerging Markets
Strong investor interest in emerging market debt (EMLC) (HYEM) has continued despite adverse political and economic issues in some countries.
Fed’s Rate Hike Decision to Drive the Markets
In the wake of disappointing economic indicators over the past month, the Federal Reserve kept the interest rate unchanged in its policy meeting this week.
Limited Options for Yield-Starved Investors
What does all this tell us? First off, there just aren’t as many opportunities for U.S. investors in international developed bond markets.
Diminishing Opportunities in Asia: What You Need to Know
The balance of countries in Asia present more interesting opportunities. To better focus our discussion, I’ll concentrate on investment grade markets.
Regulatory Hurdles Affecting Chinese and Indian Bond Markets
As the intensifying search for yield goes international, Matt examines and shares his thoughts on the different Asian bond markets.
Why Emerging Market Debt Still Looks Attractive
Investors have tended to pull money from U.S. equity funds in the month before election day in the past four presidential elections, EPFR Global data show.
Emerging Market Bond ETFs Have Seen Record-Breaking Flows in 2016
Looking closely at mutual fund and ETF flow data can provide some insight into how investors have approached the asset class this year.
A Look at Popular Post-Brexit Investments
The uncertain global environment created after the Brexit vote made investors hope for a perpetual low rate environment. The prospect of further easing from central banks in the developed markets has spurred strong demand for government debt.
Is Argentina Back in the Game, or Are Dark Clouds Here to Stay?
For more than a decade, the outgoing party’s continual resistance to honoring debt led to Argentina’s exclusion from international financial markets.
Lower Rates, Dollar, Commodities Aid Emerging Markets’ Recovery
It’s been a good year for emerging markets so far. Performance and growth have been aided by the stability of the US dollar, the commodity price recovery, and lower rates in developed markets.
Quality May Provide Attractive Risk-Adjusted Returns
It’s useful to analyze the historical returns of credit rating categories within emerging markets bonds.
Emerging Market Bonds: Higher Yields Could Reflect Higher Risks
Emerging market bonds have been doing extremely well over the past couple of months. EM debt funds have been in the green for seven consecutive weeks.
Why Does Emerging Market Debt Still Look Attractive?
Emerging market debt (EMB) offers plenty of opportunities to investors. Markets are expected to continue their outperformance for the next few quarters.
What Are the Threats for Emerging Markets?
The major threat to emerging markets is tightening in the US. While the Fed will likely leave rates unchanged in September, a hike is possible in December.
Risk-Reward Ratio Is in Favor of Emerging Market Debt
Emerging market debt (EMB) has attracted investor’s attention as a higher-yielding alternative in a world where yields are quickly falling below zero.
Why Does Fixed Income Look Promising?
Under the current uncertain economic circumstances, investors searching for higher yield might turn to fixed income.
Why Emerging Market Bonds Have Outperformed this Year
Emerging market bonds have outperformed year-to-date. Let’s take a closer look.
Intense Search for Yield Leads to Emerging Market Debt
Under the current uncertain economic circumstances, investors flocked to emerging market debts in search of higher yields.
Central and Eastern Europe Have the Brexit Blues
In the long term, Eastern Europe is largely affected by the United Kingdom’s exit from the European Union because of its strong trade links.
The Sweet Spot of Emerging Market Debt
While global growth statistics remain within muted expectations, EM debt and equity could remain the beneficiaries of additional capital flows for some time.
How Negative Rates Intensify the Hunt for Yield
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%.
Time to Look at Emerging Market Debt
Global emerging markets (“EM”) debt, both hard and local currency, rebounded strongly in June after a significant retracement in May.
The Dollar Index and Economic Uncertainty: Is There Correlation?
The rally in the US Dollar Index can be correlated to two important events: the dot-com bubble crisis in 1999 and the Argentine debt crisis in 2001.
Why Commodity Trading Advisors Fare Well When Nothing Else Works
CTAs (commodity trading advisors) offer diversification benefits (commodity exposure when the equity markets are down), along with liquidity.
The Challenges of Managing a Fixed-Income Portfolio in 2016
Gross says it’s important for investors to “take care of their liquidity.” They should have their exit options open in their fixed-income portfolio.
What Will Drive Growth in Latin America?
Emerging markets, notably economies in Latin America, have a younger population than the developed world.
Why Unconstrained Bond Funds Could Be Useful Now
Unconstrained bond funds use leverage and derivatives in their portfolios, which magnifies their risk. They have exposure to both credit and interest-rate risk.
Why Your Portfolio Needs More Than Just Equities
You know your portfolio needs more than just equities. So what can complement equities in your portfolio? How many high-yield bonds you own depends on your risk appetite.
Why Low Interest Rates Have Affected Asset Prices And Yields
Low interest rates have supported the economy, but another side effect of low interest rates is that it discourages household savings.
When The Net Asset Value Of A Bond ETF Differs From Market Price
The Intraday Indicative Value gives us a more real-time value than the bond ETF’s NAV. It’s considered an implied value of an ETF.
Investing in emerging market bonds: Proceed with caution
Emerging market debt is still a volatile asset class when compared to more traditional fixed income investments. As such, allocations to this asset class will largely be a function of an investor’s individual risk appetite.
Emerging versus developed market bonds: Which should you choose?
Let’s compare yields for emerging versus developed market bonds, using ten-year US Treasuries (IEF), BofA Merrill Lynch AAA-A Emerging Markets Corporate bonds, and the BofA Merrill Lynch B and Lower Emerging Markets Corporate bonds.
Why emerging market bonds have seen inflows in 2014
Emerging market bonds have been one beneficiary of today’s low yield environment. Is it too late to allocate to this asset class?
New bond supply spikes on Chinese financials and Walgreens issues
In a rare week, emerging market (EMB) (VWO) borrowers were the most prolific in U.S. investment-grade bond markets.
Should you invest in emerging market bonds?
Another sector to rotate into might be even higher risk asset classes that would also benefit from spread tightening, such as emerging market debt, for example the iShares Emerging Markets Bond ETF (EMB).
Recommendation: Look to select areas of emerging market debt
Select areas of the EM debt sector hold good potential, as many of these countries exhibit low leverage levels and are currently funded through year-end.
Why ETFs are the best vehicle for your beta exposure
We believe the best vehicle for your beta exposure — the most efficient, tradable and affordable vehicle — is an exchange-traded fund.
Why last week’s sharp dip in yields came as a surprise
And though the 10-year yield recovered somewhat Thursday as Treasury prices dropped, Wednesday’s dip below 2% came as a surprise.
Recommendation: Go beyond traditional stocks and bonds
Finally, it’s worth considering incorporating non-traditional, or alternative, strategies into your investing arsenal. With such investments, you can potentially enhance diversification and amplify your portfolio’s growth potential.
Reasons you should stay flexible in your bond portfolio
Forecasting is always a tricky business, but we do believe there are some important factors that will shape the future direction of the bond market and that will have an impact on the way investors should approach fixed income.
Must-read: Use emerging market bonds for higher yield potential
For those who want a little more adventure on their menu, there’s always the option of adding some unique flavors like spicy kebabs. This is the equivalent of adding some emerging markets fixed income to your bond portfolio.
Why emerging market sovereign debt outperformed US Treasuries
Sovereign borrowers in emerging markets are typically lower-rated compared to U.S. Treasuries. As a result, they provide higher yields. U.S. Treasuries (TLT) are considered to be some of the safest assets in the world.
The unique risks of BRICS and developed market investments
Most bond investments are subject to credit risk and interest rate risk. Credit risk is the risk of the borrower defaulting on the amount borrowed. Interest rate risk implies changes in the value of bond prices due to changes in interest rates. Bond prices move opposite to interest rates.
Why frontier and emerging markets are separate asset classes
With all the turmoil in emerging markets recently, some investors may be especially wary of investing in so-called frontier markets. Russ explains why frontier and emerging markets are separate asset classes, each deserving of a strategic allocation.
Emerging market bonds: The pros and cons of investing
EM spreads have tightened some as well, but not nearly as much. As a result, the yields on EM debt appear to be unusually wide given the credit quality of the issuers.
The must-know risk-return trade-off in fixed income investing
As we know from the risk-return trade-off, the higher the level of credit risk an issue has the higher the yield will likely be. Credit risk is often measured with a metric called Option Adjusted Spread or OAS.
The must-know basics of fixed income investing
A lot of investors evaluate fixed income sectors by looking at the level of yield they might receive for a given level of risk. We continue to explore how investors consider interest rate risk and portfolio positioning in the current environment.
Must-know: Investor outlook—emerging market equities
With China (FXI) announcing a gross domestic product (or GDP) growth rate of 7.5% for the second quarter and Turkey’s central bank governor suggesting additional interest-rate cuts, emerging markets seem all set to rise.
Three reasons why frontier stocks are now a strategic asset class
Many investors are approaching frontier stocks too narrowly, viewing them as a subset of their emerging markets’ (EMB) allocation and selling off part of their emerging market equities’ exposure to gain access to the frontier.
Fisher on why the Fed must avoid appearing “politically pliant”
The Fed and the Federal Open Market Committee (or FOMC) must avoid actions that appear politically motivated.
Why market reactions to the China-Vietnam tensions are mixed
Though the recent tensions in the South China Sea seem to have gathered much attention, the markets don’t seem to have factored in the conflict.