VWO - EMB: A Big EM Bond Rally Is Coming

Summary

• EM bonds look bullish in the short term as declining UST yields and improving credit risk are both supporting the sector.
• With a yield of 7.3%, the iShares J.P. Morgan USD Emerging Markets Bond ETF is likely to deliver highly positive real returns.
• The ETF is also likely to outperform most EM equity funds, with the added benefit of less volatility.

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