Meanwhile,
emerging markets bonds continue to offer value, supported by improving fundamentals.
Not exact matches
The
emerging market slaughter will
continue, especially for countries with weaker fundamentals; their equities, currency and local currency
bonds and foreign currency
bonds bearish slump has not yet reached the bottom.
The
continuing low level of government
bond yields has supported the search for yield that has been evident over the past couple of years, with the spread between yields on US government debt and yields on both corporate and
emerging market debt remaining around historical lows over the past three months (Box B).
For now, we are currently seeing the anticipated liquidity reduction harvest of wind in what are academically considered the riskiest of assets —
emerging market equities and
bonds, currencies, and commodities — as equities of developed countries such as the US, Japan and some European nations have
continued to hold up.
CORPORATE FINANCING NEWS By Gordon Platt Neither the consequent volatility in
emerging markets nor weak US employment data will deter the Federal Reserve from
continuing to gradually reduce its purchases of
bonds, analysts say.
Prominent ETF areas — high yield corporate
bonds,
emerging market bonds, preferreds, REITs, dividend stocks —
continue to provide remarkable price appreciation as well as reliable income.
The CIO went on to encourage investors to invest more in Europe and
emerging markets (both lagged North America significantly in 2014), reduce their
bond allocations (
bonds had their best year since 2011), and declared that «dividend stocks will
continue to pay off» (several popular dividend - focused ETFs in Canada and the US underperformed the broad
market).
While we are mindful of potential risks, this backdrop
continues to bode well for riskier segments of the
bond market such as corporate
bonds, high yield, and
emerging market debt.