iShares Emerging Markets Local Currency Bond ETF(LEMB)- NYSEARCA
  • Mon, Sep. 12, 9:53 AM
    | Mon, Sep. 12, 9:53 AM | 1 Comment
  • Wed, Aug. 10, 2:52 PM
    • Some estimates put the amount of global bonds trading with negative yields as high as $10T, so who could fault an investor for turning to emerging market paper as a way to eke out some income, says Brown Brothers Harriman.
    • The team notes portfolio investment flows into EM have been positive in four of the last five months, with the early signs pointing to a continuation of the trend in August.
    • While Brown Brothers sees more gains for EM credit, it waves the yellow flag: "A purely liquidity driven model of investing will work ... until it doesn't. We caution investors against getting too optimistic about EM, as fundamentals are lagging the price action."
    • The iShares JPMorgan USD Emerging Market Bond Fund (NYSEARCA:EEM) is higher by 10.7% YTD, while yielding north of 4%.
    • ETFs: EMB, PCY, TEI, EDF, ELD, EDD, EMLC, VWOB, GHI, EDI, EMD, MSD, SBW, LEMB, EMAG, EBND, EMSH, FEMB, EMIH, EMTL, EMBH, IGEM
    | Wed, Aug. 10, 2:52 PM | 2 Comments
  • Mon, Jul. 25, 3:01 PM
    • Holders of long-dated U.S. paper could see losses of more than 1% annually for the next five years, says the asset manager's Global CIO Richard Turnill.
    • What's a fixed-income investor to do? Higher returns are to be found in the debt of hard-currency emerging markets and high yield. For Turnill and team, EM debt is particularly attractive when compared to Treasurys over the next half-decade.
    • ETFs: EMB, PCY, TEI, EDF, ELD, EDD, EMLC, VWOB, GHI, EDI, EMD, MSD, SBW, LEMB, EMAG, EBND, EMSH, FEMB, EMIH, EMBH
    | Mon, Jul. 25, 3:01 PM | 10 Comments
  • Wed, Jun. 8, 7:52 AM
    • AUM at the iShares JPMorgan U.S. Dollar Emerging Market Bond Fund (NYSEARCA:EMB) surged to $6.5B last month, pushing it past the largest mutual fund in that category.
    • While the appeal of low-cost, passive funds is obvious in developed economies, their rise in emerging markets can be labeled at least somewhat surprising, thanks to the idea sharp managers should be able to more easily find and exploit profitable opportunities.
    • The reality though, is that active managers struggle to outperform, no matter the market.
    • Emerging market fixed-income ETFs: EMB, PCY, TEI, EDF, ELD, EDD, EMLC, VWOB, GHI, EDI, EMD, MSD, SBW, LEMB, EMAG, EBND, EMSH, FEMB, EMIH, EMTL
    | Wed, Jun. 8, 7:52 AM | 1 Comment
  • Wed, May 11, 8:09 AM
    • "We’ve been outright reducing risk in some of the higher-risk, or more volatile, segments of the market,” says Pimco CIO Dan Ivascyn. “The emerging-market region has significant near-term challenges. From a shorter-term perspective, we’re much more cautious."
    • Emerging market bonds in April fell to 9.4% of assets at Pimco's Total Return Fund (MUTF:PTTRX)/ That's down from 28.9% just last August, and the lowest proportion since August 2014. Like other risk assets, emerging market paper has put in a whale of a rally since mid-February.
    • The Bloomberg USD Emerging Market Sovereign Bond Index is up 7.2% this year.
    • U.S. government paper holdings make up about 36% of the fund.
    • ETFs: EMB, PCY, TEI, EDF, ELD, EDD, EMLC, VWOB, GHI, EDI, EMD, MSD, SBW, LEMB, EMAG, EBND, EMSH, FEMB, EMIH
    | Wed, May 11, 8:09 AM | 4 Comments
  • Nov. 23, 2015, 12:30 PM
    • "Hazard ahead: The emerging market credit cycle has turned down," is the title of a recent JPMorgan report, arguing credit markets will tighten as the Fed boosts rates.
    • A shoe not yet dropped, says the team, is that debt to GDP ratios are not decreasing.
    • "Remember that a lot of the credit growth in emerging markets is no more than the flip side of easy money in developed markets," and as the Fed normalizes, this can reverse, though Europe and Japan keeping their feet on the gas pedal should mitigate the turn.
    • The ratio of broad emerging market nonfinancial private credit to GDP hit 128% of GDP in Q1, up 51 percentage points from 2007. Exclude China, and the numbers are not nearly as gaudy, but still frothy, and the moves resemble those from that of developed markets in the years leading up to the global financial crisis.
    • ETFs: EMB, PCY, TEI, EDF, ELD, EDD, EMLC, GHI, VWOB, EMD, EMCB, EDI, MSD, EMCD, EMHY, HYEM, SBW, LEMB, EMAG, CEMB, EBND, PFEM, EMSH, FEMB
    | Nov. 23, 2015, 12:30 PM | 6 Comments
  • Oct. 2, 2015, 4:32 AM
    | Oct. 2, 2015, 4:32 AM | 1 Comment
  • Oct. 1, 2015, 3:02 PM
    • Back in 1988, net capital market outflows were $9B, and they've been positive ever since. This year, according to the Institute of International Finance, net outflows are set to return to the tune of a whopping $540B.
    • Meanwhile Federated Investors portfolio manager Ruggero de'Rossi thinks now is the time to buy the dip in emerging market government bonds. The yield spread between sovereign EM debt and comparable U.S. Treasury paper has widened to 420 basis points from a recent low of 250 bps. He likes the risk/reward across a diverse array of EM countries. He's not so bullish on EM corporate debt, however, as many companies have not fully hedged exchange rate exposures.
    • ETFs: EMB, PCY, TEI, EDF, ELD, EDD, EMLC, GHI, VWOB, EMD, EDI, MSD, SBW, LEMB, EMAG, EBND, EMSH, FEMB
    | Oct. 1, 2015, 3:02 PM | 1 Comment
  • Aug. 28, 2015, 1:11 PM
    | Aug. 28, 2015, 1:11 PM | 2 Comments
  • May 6, 2015, 4:36 AM
    | May 6, 2015, 4:36 AM | 5 Comments
  • Apr. 6, 2015, 5:29 AM
    • Facing decade-high inflation, a fiscal crisis and water rationing, more than a million Brazilians took to the streets last month to protest government corruption and mismanagement. In China, growth is slowing as property prices fall, propelling more than 1,000 iron ore mines toward financial collapse. In Russia, citizens are deserting their nation’s banks, switching savings into U.S. dollars. Such snapshots of growing distress in the world’s largest emerging markets are echoed among many of their smaller counterparts.
    • In aggregate, the 15 largest emerging economies experienced their biggest capital outflow since the crisis in the second half of last year.
    • These trends, analysts say, signal a “great unravelling” of an emerging markets debt binge that has swollen to unprecedented dimensions. The pain inflicted by this capital flight is being felt in the real-life economies of vulnerable countries and in a surging number of emerging market corporations that are forecast to default on their debts.
    • Source: FT
    • ETFs: EMB, PCY, ELD, ECON, EMLC, CEW, VWOB, EMIF, PXR, LEMB, EMCG, EMAG, EBND, AYT, PGD, EMRE, PFEM, JEM, EMSH, FEMB
    | Apr. 6, 2015, 5:29 AM | 6 Comments
  • Feb. 9, 2015, 3:49 PM
    | Feb. 9, 2015, 3:49 PM | 4 Comments
  • Nov. 5, 2014, 1:27 PM
    • The First Trust Emerging Markets Local Currency Bond ETF (NASDAQ:FEMB) is an active fund that seeks to maximize total return and income, while also minimizing volatility, by investing in bonds that are denominated in the issuer's local currency.
    • Another active fund, the First Trust Low Duration Mortgage Opportunities ETF (NASDAQ:LMBS) will invest at least 80% of its net assets in investment-grade, mortgage-related debt securities and other mortgage-related instruments in the search of current income for investors.
    • The third fund launched by the group today was the First Trust International IPO ETF (NASDAQ:FPXI), which tracks a basket of the 50 largest and typically most liquid companies that are domiciled outside the U.S. within the IPOX Global Composite Index.
    • Other emerging market bond ETFs: EMB, PCY, ELD, EMLC, VWOB, LEMB, EMAG, EBND, EMSH
    • Other mortgage REIT ETFs: REM, MORL, MORT
    • Other IPO ETFs: FPX, IPO, IPOS
    | Nov. 5, 2014, 1:27 PM
  • Jul. 1, 2014, 3:45 AM
    • Emerging market bond sales have soared past analyst estimates for the first half of 2014, as investors flock to higher yields. $268B of bonds sold so far this year, compared to the $240B sold in the same period of 2013.
    • Due to a dovish Fed, U.S. yields have fallen this year to 2.5% from end-2013 levels of 3%. As a result, increased demand for higher yield has investors trading emerging market bonds despite geo-political risks.
    • ETFs: EMB, PCY, ELD, EMLC, EMCB, VWOB, EMCD, HYEM, EMHY, LEMB, EMAG, CEMB, EBND, PFEM, EMSH, SEMF, IEMF, LEMF
    | Jul. 1, 2014, 3:45 AM | 1 Comment
  • Jan. 7, 2014, 12:12 PM
    • The EGShares TCW EM Short Term Investment Grade Bond ETF (SEMF), Intermediate Term Investment Grade Bond ETF (IEMF), and Long Term Investment Grade Bond ETF (LEMF) will begin trading on January 8th; offering exposure to both sovereign and corporate bonds.
    • Each new fund will charge 0.65%, which is above the average expense ratio for this sector, but few funds currently offer specific duration exposure to emerging market bonds.
    • Other emerging market bond ETFs: EMB, PCY, ELD, EMLC, EMCB, VWOB, ILB, EMCD, LEMB, ITIP, EBND, EMAG, GTIP, PFEM, EMSH
    | Jan. 7, 2014, 12:12 PM
  • Nov. 21, 2013, 9:12 AM
    • Emerging market bond ETF investors worried about duration risk will have their first short-duration fund to choose from starting today with the launch of ProShares' Short-Term USD Emerging Markets Bond ETF (EMSH). The fund has an expense ratio of 0.5%.
    • The underlying index only selects paper with a fixed rate and maturity of 0-5 years, with a weighted average yield-to-maturity of three years or less. Sovereign, and corporate - both investment and speculative grade - will be included.
    • As comparison, the iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) has a 7-year effective duration.
    • Corporate EM bond ETFs: EMCB, EMCD, HYEM, EMHY
    • Government EM bond ETFs: EMB, PCY, ELD, EMLC, ILB, LEMB, ITIP, EBND, GTIP, PFEM
    | Nov. 21, 2013, 9:12 AM
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