WIP - High Yield Bonds In Emerging Markets: 2024's Upside Outliers

2024-02-13 09:15:00 ET

Summary

• Much of the global bond market is struggling this year, with a conspicuous exception - below-investment grade bonds issued by companies in emerging markets.
• VanEck Emerging Markets High Yield Bond ETF is up 2.1% so far in 2024.
• Although future yields are uncertain when buying bond funds, the yield premium in EM hasn’t gone unnoticed.

Much of the global bond market is struggling this year, with a conspicuous exception: Below-investment grade bonds issued by companies in emerging markets. Based on year-to-date results through Monday's close (Feb. 12), this slice of global fixed income is outperforming and delivering a rare bit of strength in an otherwise lackluster field, based on a set of ETF proxies....

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