Emerging-market debt looks compelling: Barron's


"Sovereign emerging-market yields today are consistent with their averages between 2003 and 2007, but U.S. Treasury rates are only about half as high," writes Shuli Ren, in a bullish piece on emerging-market debt.

The premise is simple: 17 consecutive weeks of EM bond fund outflows has "flooded out irrational exuberance that had piled up over the winter and spring" and brought the market back down to earth, even as institutional demand has remained strong, suggesting retail investors have overreacted to taper talk.

With the Fed still striking a highly accommodative tone, emerging-market debt could rally as investors discover the relatively attractive valuations.

ETFs - EMB, LEMB, PCY, EMLC, ELD, PFEM, EBND, VWOB; Asia: ALD; Latin America: BONO

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