VanEck Vectors J.P. Morgan EM Local Currency Bond ETF

The International Monetary Fund defines REER as an average of the bilateral real exchange rates between a country and its trading partners, weighted by their respective trade shares.

Strong investor interest in emerging market debt (EMLC) (HYEM) has continued despite adverse political and economic issues in some countries.

In March 2017, Citi’s fixed income indexes decided to include onshore Chinese bonds (EMB) (PCY) in its three government bond indexes.

In the emerging market bond space (PCY) (EMLC), high-yield bonds and local currency bonds outperformed hard currency sovereign bonds.

The opening of China’s onshore bond market (EMB) (PCY) was a gradual process that included a number of cautious measures.

It’s useful to analyze the historical returns of credit rating categories within emerging markets bonds.

As the emerging market local debt assets (EBND) (ELD) continue to evolve and expand, investors are increasingly looking for opportunities in the space to enhance returns.

During the past two decades, EM (emerging markets) local debt has evolved to become the largest and most liquid debt market within the emerging market bond space.

The yuan remains a focus of attention of the international community and a key risk for China’s macroeconomic stability in recent years.

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.

China’s onshore bond market (EMB), consisting of locally denominated and issued bonds, is larger than the offshore bond market.

Trump’s unexpected presidential victory caused short-term uncertainty about markets and policies. His win reinforced a reflationary theme in global markets.

In her speech at the Jackson Hole Economic Symposium, Fed chair Janet Yellen expressed optimism about another rate hike in the United States.

In today’s context, emerging market bonds (IGEM) look like good opportunities for investors.

Emerging markets’ nonfinancial corporate debt breached the $26 trillion mark in the first half of 2016.

Investment-grade emerging market sovereigns have been given BBB or higher credit ratings by one of the credit rating companies. They’re relatively safe.

The Federal Reserve kept its key interest rate unchanged in its policy meeting this week while signaling a possible rate hike in December.

While around 30% of developed market bonds (IHY) are trading at negative yields, emerging market debts (HYEM) are offering attractive returns.

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.

Perhaps one of the biggest tailwinds recently, particularly for local currency strategies, has been the stabilization and rebound in commodity prices this year.

Emerging market debt (EMB) offers plenty of opportunities to investors. Markets are expected to continue their outperformance for the next few quarters.

Under the current uncertain economic circumstances, investors flocked to emerging market debts in search of higher yields.

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.

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%.

Global emerging markets (“EM”) debt, both hard and local currency, rebounded strongly in June after a significant retracement in May.