Total Return from currency appreciation, implied
yields of Emerging Markets currencies, and income generated from U.S. money market collateral securities
Not exact matches
Higher U.S.
yields can put pressure on the
currencies of emerging market countries that run current account deficits such as Indonesia and India, said Satoshi Okagawa, senior global
markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.
The era
of cheap or zero - interest money that led to a wall
of liquidity chasing high
yields and assets — equities, bonds,
currencies, and commodities — in
emerging markets is drawing to a close.
Our Global
Market Strategies segment, established in 1999 with our first high
yield fund, advises a group
of 46 active funds that pursue investment opportunities across various types
of credit, equities and alternative instruments, including bank loans, high
yield debt, structured credit products, distressed debt, corporate mezzanine, energy mezzanine opportunities and long / short high - grade and high -
yield credit instruments,
emerging markets equities, and (with regards to certain macroeconomic strategies)
currencies, commodities and interest rate products and their derivatives.
The fund holds a minimum
of 25 % allocation to mortgage - backed securities, a maximum
of 20 % in high
yield corporate bonds, up to 15 % allocation to bonds denominated in foreign
currencies, and a 20 % cap to
emerging markets.
For that reason, many looking at carry trading strategies will have to go out over the risk curve and borrow in a cheap major
currency in order to buy a higher -
yielding emerging market (EM)
currency in order to earn a
yield beyond that
of higher - duration US Treasury bonds (considered safe
yield).
Of course, these expected
currency gains are small compared to the real
yield on
emerging market bonds.
Class A shares with sales charges performance reflects the maximum 5.5 % sales charge, with the following exceptions: Class A shares
of Hartford
Emerging Markets Local Debt, Hartford High
Yield, Hartford Inflation Plus, Hartford Municipal Opportunities, Hartford Municipal Real Return, Hartford Strategic Income, Hartford Total Return Bond, Hartford World Bond, Hartford Schroders
Emerging Markets Debt and
Currency, Hartford Schroders Tax - Aware Bond, Hartford Schroders
Emerging Markets Multi-Sector Bond and Hartford Schroders Global Strategic Bond reflect a maximum 4.5 % sales charge; Class A shares
of Hartford Floating Rate and Hartford Floating Rate High Income reflect a maximum 3.0 % sales charge; Class A shares
of Hartford Short Duration reflect a maximum 2.0 % sales charge.
Some
of those risks include general economic risk, geopolitical risk, commodity - price volatility, counterparty and settlement risk,
currency risk, derivatives risk,
emerging markets risk, foreign securities risk, high -
yield bond exposure, noninvestment - grade bond exposure commonly known as «junk bonds,» index investing risk, industry concentration risk, leveraging risk,
market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions, and large cash positions.