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No Alternative to Emerging Debt Puts Holdings at 4-Year High

  • Emerging markets now make up 16.5% of U.S. global bond funds
  • Near-zero rates push money managers toward higher EM yields
Updated on

Global bond funds now have more money invested in emerging-market debt than at any time in the past four years.

The average allocation to developing-nation bonds jumped to 16.5 percent in July, according to Morningstar Inc. Holdings have climbed almost four percentage points since the beginning of the year, the data set of 96 U.S.-domiciled global funds showed.