Tag Archive | EMB

Three ETFs To Play Emerging Market Debt

As developing nations continue to draw investor attention, opportunities in developing market debt may present a viable opportunity.

To not much surprise, many have been turning to developing nations mainly due to their aggregate, or combined, size and expected exponential growth compared to the United States in the near future.   In fact, a recent study indicates that 97% of the world’s population, 75% of its economic production and nearly 67% of stock market capitalization is outside of the United States. Read More…

3 ETFs To Play Brazilian Bonds

As talks of a bubble forming in the US bond market continue to prevail, many investors have turned to the Brazilian bond market and for good reason.

According to investment data firm, EPFR Global, international bond fund managers have infiltrated the Brazilian bond markets to the tune of $5.2 billion of assets as of September 22, 2010, more than double that seen in 2009.  Furthermore inflows into Brazilian bonds account for more than 10% of all inflows into emerging market bonds.  Lastly, local Brazilian government

Currently, local Brazilian government bonds are yielding more than 11 percent on one-year bonds and are expected to continue to do so as demand is expected to remain strong, especially from countries with low interest rates, suggests Kenneth Rapoza of Barrons.  Read More…

Three International Bond ETFs Worth A Look

As fear continues to take its toll on Wall Street, U.S. debt continues to balloon and economic indicators continue to disappoint, investing in bonds of low-debt nations may be appealing.

What is most alarming of all is the U.S. debt.  Currently, U.S. debt is north of $13 trillion and nearly 89% of GDP.  As for the future, the International Monetary Fund expects the debt to GDP ratio to soar north of 100% at current spending levels.  Read More…

Why Emerging Market Bonds Are Worthy

By Kevin Grewal

As developing nations continue to draw investor attention, opportunities in developing market debt may present a viable opportunity.

To not much surprise, many have been turning to developing nations mainly due to their aggregate, or combined, size and expected exponential growth compared to the United States in the near future.   In fact, a recent study indicates that 97% of the world’s population, 75% of its economic production and nearly 67% of stock market capitalization is outside of the United States.

As for economic growth, developing nations are expected to grow at two to three times the rate of the United States.  Additionally, the Fed’s decisions to keep interest rates at historically low levels to prevent a double dip recession as well as the federal government running record level deficits points to a likelihood in declines of the dollar against other currencies, further adding to the appeal to developing nations. Read More…

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