Emerging-Debt Rally Fuels Concern Amid Record Year for Sales

  • Yields on emerging-market dollar bonds near lowest since May
  • Markets are ‘simply not as cheap’: Aberdeen Standard
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Investors are starting to worry that the world of emerging-market bonds is starting to overheat.

The Federal Reserve’s dovish turn and optimism about a trade deal between the U.S. and China spurred borrowers to raise about $360 billion in 2019, a record on a year-to-date basis. And more than $14 billion has flowed into developing-nation debt funds this year, EPFR Global data cited by Bank of America Merrill Lynch show.