WSJ today on emerging market bonds shows some managers cutting back:(my bolds)
Emerging market bond funds have been among investors' favourites since 2009. In the last three years, investors poured a net $29bn into the funds, according to data compiled for the Journal by Morningstar. In 2011 alone, investors bought a net $12.5bn, up 380% from a net $2.6bn two years earlier, despite a heavy selloff during the last four months of the year that was partly driven by a worsening of the European crisis.
"The amount of money going into that category in the last year is pretty staggering," said Michael Herbst, an associate director of fund analysis at Morningstar, who describes the market as overheated.....
Paul DeNoon, director of emerging market debt at AllianceBernstein, which has $19bn in the category, said the firm has been reducing its exposure to emerging markets in part because, DeNoon said, there are better opportunities available-in US corporate bonds, for example.
"You always have to be concerned when this much money goes into a fairly small market," he said.