IGEM - EMB: Emerging Into Crisis Potential For Heavy Asymmetric Losses

• EMB is a large fund that provides investors exposure to Investment Grade and High Yield Emerging Market Sovereign bonds. Most Investors are income-seeking and risk-averse.
• Due to current and potential future macro outlook. EM Sovereign Debt could be repriced significantly in the next 3-24 months, with a 30-50% downside.
• Buy-and-hold investors of EMB, and similar funds should significantly reduce or eliminate exposure.
• Aggressive investors may consider stock replacement, shorting the ETF, or going long out-of-money puts.

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