Foreign fixed-income markets from a US investor perspective have been an unappealing asset class lately – with a glaring exception: corporate bonds in emerging markets. Year to date, this slice of global fixed-income securities is hot, based on a set of ETFs through Thursday’s close . The rest of the field is struggling.
Accordingly, a strategy of hedging out the US dollar exposure has juiced returns further for EM high yield. Meanwhile, the delay in expected rate cuts by the Federal Reserve has been a factor for why central banks in emerging markets have kept rates high. In turn, that’s been a plus for global investors seeking yield.
Currency risk and higher volatility in emerging markets could reduce if not eliminate any premium in these countries’ fixed-income securities for US investors, but for the moment the crowd is overlooking that hazard and bidding up prices that’s left the rest of the bond world far behind.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Herkunft: Investingcom - 🏆 450. / 53 Weiterlesen »
Herkunft: Investingcom - 🏆 450. / 53 Weiterlesen »