HYEM - HYEM: A Good Emerging Market Bond Fund For After A Credit Dislocation

2024-02-19 05:48:51 ET

Summary

• Concerns about a potential debt crisis caused by foreign entities borrowing in dollars and causing financial distress and global contagion.
• The VanEck Emerging Markets High Yield Bond ETF (HYEM) is worth considering after a bout of global volatility and dislocation in credit markets.
• HYEM holds a diverse portfolio of high-yield bonds from various emerging markets, with a focus on sectors like finance, energy, and basic materials.

The more the dollar strengthens, the more I worry about a debt crisis sparked by foreign entities which borrows in dollars and who then must scramble for them, causing financial distress and potential global contagion. Because of this, I'd be nervous about considering funds like the VanEck Emerging Markets High Yield Bond ETF ( HYEM ), though I think it could be worth considering after a bout of global volatility and dislocation in credit markets....

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