Sunday, January 13, 2013

Emerging market bond funds

Just a quick observation here:

Rich bond yields you’re likely missing : Emerging markets gain popularity with income investors

Just guessing, but I have to say that the yield on these emerging market bond funds is probably too low for the risk. Is it better than treasuries? Yes. But, I wouldn’t put my money in treasuries either. These yields are artificially low, and just because one is higher than another doesn’t make it a good bet. And just because emerging market bond funds are not directly affected by the Fed’s actions doesn’t mean that there hasn’t already been a Fed effect on those bonds.

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