ISAPF - Emerging Market Debts (Or Funds) As A Weakened-Dollar Bet

A new report by the William Blair funds illustrates why some investors may see emerging market debt as a good play over the near future, especially if the assets of the funds are denominated in the local currency. That is a play on dollar weakness.

The report uses the JPMorgan Government Bond Index-Emerging Markets (GBI-EM), FX hedged, as its benchmark for EM local performance. This is an index of bonds, not funds, but it does indicate the underlying realities.

For the countries contributing to the GBI-EM, currencies are at least 3% to 5% cheaper than

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