VanEck Vectors EMInvGrd+BBR USD SovBdETF
Inclusion of Chinese Onshore Bonds in Global Indexes
In March 2017, Citi’s fixed income indexes decided to include onshore Chinese bonds (EMB) (PCY) in its three government bond indexes.
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.
China’s Baby Steps to Open Its Onshore Bond Market
The opening of China’s onshore bond market (EMB) (PCY) was a gradual process that included a number of cautious measures.
Quality May Provide Attractive Risk-Adjusted Returns
It’s useful to analyze the historical returns of credit rating categories within emerging markets bonds.
Why Emerging Market Bonds Have Done Well This Year
In addition to supportive technical and monetary policy, fundamentals appear to be stabilizing, and in many cases, improving in emerging markets economies.
Why Emerging Market Debt Is an Interesting Choice Right Now
Are there any other strategies that investors might want to consider in this environment?
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.
Could China Attract Higher Inflows after Bond Market Reforms?
The yuan remains a focus of attention of the international community and a key risk for China’s macroeconomic stability in recent years.
What Difference Does Index Inclusion Make?
Government bond yields in China are higher than its Asian counterparts such as South Korea and Singapore and much higher than major developed markets.
How Higher Inflows to China Could Impact Other Emerging Markets
With the onset of reforms, foreign holdings in China’s onshore bond (EMB) (PCY) market is gradually increasing.
What’s Holding Back Foreign Investors from China?
Many leading bond index providers are still not including China’s onshore bonds in their benchmark indexes due to various regulatory and operational concerns.
Bond Market Reform Is a Priority for Policymakers
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.
China’s Onshore Bond Market Reforms
China’s onshore bond market (EMB), consisting of locally denominated and issued bonds, is larger than the offshore bond market.
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.
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.
Fallen Angels Outperformed High Yield Bond Market
Investors looking for opportunities in fallen angel bonds can look at the VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL).
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.
Why Attractive Yields Are Supporting the Emerging Market Rally
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.
Looking to Local-Currency Emerging Market Bonds for Opportunities
In today’s context, emerging market bonds (IGEM) look like good opportunities for investors.
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.
Investment-Grade Emerging Market Bonds Appear Attractive
Investment-grade emerging market sovereigns have been given BBB or higher credit ratings by one of the credit rating companies. They’re relatively safe.
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.
Emerging Market Bonds Could Be the New Black
In this series, we’ll see why emerging market bonds are looking attractive, how the Market has gained position this year, and the risks emerging market bond investors face.
Why Emerging Market Bonds Have Outperformed this Year
Emerging market bonds have outperformed year-to-date. Let’s take a closer look.