There’s a $1.6 Trillion Emerging-Market Bond Fever Worrying BIS
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Bond buyers have generally grown more risk-averse as 2014 drags on -- except when it comes to emerging-market debt.
Dollar-denominated notes of developing nations from Mexico to Indonesia have returned 7 percent this year, more than U.S. high-yield and investment-grade bonds. This is a departure from last year, when investors disproportionately fled emerging-market debt amid hysteria that rates would soar as the Federal Reserve slowed its bond purchases.