Rising Titans: The Allure of Emerging Market Corporates

By Behnood Noei, CFA Director, Fixed Income In 2023, a dominant theme for markets was the return of income in fixed income. Fast-forward to 2024, and despite a significant rally in spreads and a fall in yields during the fourth quarter, we believe this theme is still alive and well.

ETF Trends • Mar 16, 2024

Q4 Report: Tax-Exempt Bond Funds Hit Second Highest Quarterly Return As Fixed Income Rebounds From Q3 Loss

Q4 Report: Tax-Exempt Bond Funds Hit Second Highest Quarterly Return As Fixed Income Rebounds From Q3 Loss

Seeking Alpha • Jan 12, 2024

Spotting Opportunities And Risks Across The EM Investment Universe

In emerging markets valuations look attractive today after the losses across financial markets early this year. PIMCO's investment process is founded upon our macroeconomic outlook and our in-house country and credit research.

Seeking Alpha • Aug 31, 2022

Technical Tailwinds May Lift EMFX

Performance of emerging markets local currency bonds has been negatively impacted by the U.S. dollar's strength since mid-year, despite the higher real yields and upside growth surprises in many emerging markets. Currency returns can be volatile, and external factors can have a bigger short-term impact on an emerging markets currency (EMFX) even if relatively attractive fundamentals may provide longer-term support.

Seeking Alpha • Nov 30, 2021

CEF Weekly Market Review: Market Shrugs Off Treasury Weakness

We review CEF market valuation and performance over the first full week of October and highlight recent market events. The CEF market took advantage of the rally in stocks and mostly shrugged off the continued rise in Treasury yields.

Seeking Alpha • Oct 17, 2021

Foreign Bond ETFs Are Having A Tough Year

International diversification for bond allocations is, in theory, an attractive concept, but in practice it's not working out so great in 2021 for US investors, based on a set of ETFs. A key headwind for foreign bonds is the rebound in the US dollar.

Seeking Alpha • Sep 30, 2021

The Green Bond Potential In Emerging Markets

We have seen a sharp growth in the issuance of not only green bonds but also sustainability bonds and social bonds, which are closely related. When thinking about issuance outside of the corporate space, sovereigns and state-owned enterprises in Latin America are leading in that respect, with Asia closely following.

Seeking Alpha • Sep 16, 2021

Cutting The Gordian Knot - How ESG Integration Can Help Solve Challenges To Investing In Emerging Market Corporates

While emerging markets offer exciting opportunities, they also pose challenges that are significant and entangled. This is particularly relevant for investors in EM corporate bonds. Over the last few years, the emerging market corporate bond sector has grown enormously and generated compelling risk-adjusted returns.

Seeking Alpha • Jun 30, 2021

3 Segments, Multiple Opportunities In Emerging Markets

Emerging markets offer attractive alternatives to fixed income investors searching for yield amid the trillions of dollars of negative-, zero-, and low-yielding debt globally. Within emerging market hard currency investment grade bonds, we think it is prudent to be shorter duration or at least hedge the Treasury risk component, given the low yield per unit of duration today.

Seeking Alpha • Apr 27, 2021

Giving Credit Where It's Due

The WisdomTree Emerging Markets Corporate Bond Fund (EMCB) offers investors an actively managed strategy that invests in globally operating companies that are headquartered in emerging markets and issue debt in USD. EMCB offers considerably more yield (+172 basis points) than U.S. IG, but with far less duration (-3.8 years), while for U.S. HY, the yields are very similar with only one year more in duration.

Seeking Alpha • Apr 15, 2021