The Inevitability of Emerging Market Bond Risks

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 34 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 34%
  • Publisher: 92%

Finance Nyheter

Emerging Market Bonds,Risks,Credit Ratings

Despite warnings, the risks associated with emerging market bonds are inevitable and more frequent than the public realizes. However, with the right approach and risk tolerance, investing in countries with below-investment-grade credit ratings can be profitable.

and others have been warning about has yet to materialize, but it will eventually. These events are inevitable and more frequent than the public realizes. It’s the timing that’s extremely difficult to predict, as well as determining which countries will become ensnarled.

Sovereign debt is defined as debt issued by an independent political entity, be they U.S. Treasuries, Government of Canada bonds or debt issued by any country. Richer countries, such as the U.S. and Canada, issue almost all of their debt in their own currency. Consequently, they can always print more of their currencies to make their coupon payments and roll over their maturing instruments.

Investors need to think long term. Sovereign debt crises come and go and the world marches on. Some countries have bonds that have seen their yield spreads widen dramatically relative to U.S. Treasuries, such as Turkey’s, while India and others have narrowed.

Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 5. in SE
 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Colombia Returns to Bond Market in Test for EM Junk AppetiteColombia returned to the bond market, testing investor appetite for emerging market junk bonds.
Källa: BNNBloomberg - 🏆 83. / 50 Läs mer »

Bitcoin ETF creates BTC history as new emerging cryptocurrency enters marketThe approval of the first Bitcoin (BTC) ETF and the entry of Shiba Budz (BUDZ) mark the beginning of a new chapter in cryptocurrency history.
Källa: CryptoAmb - 🏆 22. / 68 Läs mer »

IKEA Foundation backs emerging market EV push with $100 million grantThe Drive Electric Campaign said donation would be used to help support lobbying efforts and campaign for the EV transition Africa, Latin America and Southeast Asia
Källa: globeandmail - 🏆 5. / 92 Läs mer »

China’s Yuan a Standout Funder for Emerging-Market Carry TradeThe historic end to super-easy monetary policy in Japan and a surprise rate hike in Taiwan have strengthened the yuan’s appeal as a funding currency for the global emerging-market carry trade.
Källa: BNNBloomberg - 🏆 83. / 50 Läs mer »

China’s Yuan Standout Funder for Emerging-Market Carry Trade(Bloomberg) -- The historic end to super-easy monetary policy in Japan and a surprise rate hike in Taiwan have strengthened the yuan’s appeal as a funding...
Källa: YahooFinanceCA - 🏆 47. / 63 Läs mer »

Currencies Miss Emerging-Market Rebound Led by Reform StoriesEmerging-market currencies fell for a second day Thursday, on track for the lowest close since Feb. 14, amid thin trading ahead of the Easter holiday in the Americas and the end of the quarter.
Källa: BNNBloomberg - 🏆 83. / 50 Läs mer »