Interested in emerging-market debt but wary about rising bond yields as the Federal Reserve keeps raising interest rates? Then it might be worth looking at what used to be a riskier option -- local-currency bonds.
Historically low inflation rates in countries from Indonesia to Brazil mean, as a group, developing nations aren’t facing the pressure they sometimes had during U.S. monetary tightening cycles. And with the U.S. dollar depreciating even as the Fed hikes, local-currency debt has some insulation from worries such as supply hitting the Treasuries market.
