Wed, May 6, 4:36 AM
- A worldwide selloff in government bonds deepened today, buoyed by rising German Bund yields that recently hit record highs and narrowed their gap with U.S. Treasuries.
- Benchmark 10-year Bunds now trade at 0.53%, having hit a record low of 0.05% last month, when many expected them to turn negative.
- The vicious bond market meltdown is also raising pressing questions for investors - is this a correction or merely a trend change?
- ETFs: EMB, PCY, EU, BNDX, ELD, JGBS, EMLC, JGBD, DSUM, WIP, BWX, VWOB, AUNZ, ALD, IGOV, ILB, BUNL, LEMB, JGBL, EMAG, ITLY, ITIP, ISHG, BWZ, ITLT, EBND, CBON, BUNT, GGOV, JGBT, GTIP, PFEM, JGBB, EMSH, CHNB, FEMB
Fri, May 1, 3:31 PM| Comment!
Mon, Apr. 6, 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
Wed, Apr. 1, 2:04 PM| Comment!
Mon, Mar. 2, 3:34 PM| Comment!
Mon, Feb. 9, 3:49 PM
- "Simple broad credit allocations are to be avoided," says Invesco Fixed Income Chief Strategist Rob Waldner. "With volatility comes opportunity, but it is more important than ever for investors to do detailed research to avoid credit accidents that are likely to come with increasing frequency in coming quarters.”
- As for credit's troubles from the crash in oil , current market sentiment and pricing is pricing in a recovery in oil prices which isn't guaranteed to happen.
- Waldner is particularly cautious on high-yield and emerging market debt - both sovereign and corporate.
- ETFs: HYG, JNK, EMB, HYLD, PCY, ELD, EMLC, PHB, VWOB, SJB, IHY, ANGL, HYEM, EMHY, HYLS, PGHY, UJB, LEMB, HYXU, EMAG, XOVR, EBND, QLTC, IJNK, EMSH, FEMB
Mon, Feb. 2, 2:47 PM| Comment!
Dec. 29, 2014, 4:44 PM| Comment!
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.
- "These funds provide a strategy for investors to gain exposure to two fixed income sectors in which we believe in-depth research and analysis, along with ongoing surveillance, can add significant value for investors," said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust, in a press release.
- 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
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
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
Nov. 13, 2013, 11:33 AM
- Market Vectors files paperwork for the Emerging Markets Aggregate Bond ETF EMAG, with an after-fee-waiver annual expense ratio of 0.49%.
- The fund will hold both sovereign and corporate, and both investment grade and high-yield paper from a large number of emerging market countries. At the end of Q3, the tracked index held about 1,800 bonds from a total of 694 issuers.
- Market Vectors' Emerging Markets Local Currency Bond ETF (EMLC) has just over $1B in AUM.
- Related ETFs: EMB, PCY, ELD, EMLC, ILB, LEMB, ITIP, EBND, GTIP, PFEM, EMCB, EMCD, HYEM, EMHY
Oct. 4, 2013, 1:47 PM
- Market Vectors announced earlier this week that it's popular fund for Latin American bond exposure will undergo a number of changes, including a new name, ticker, and index.
- BONO will be rebranded later this year as the Market Vectors Emerging Markets Aggregate Bond ETF and trade under the ticker EMAG to reflect the new investment objective; to seek and track the price and performance of the Market Vectors EM Aggregate Bond Index.
- Ed Lopez, Marketing Director with Market Vectors in the recent press release, "we are seeking to introduce an efficient means for investors to gain access to a broad exposure of emerging markets bonds in a single ETF."
- Effected ETFs: ILF, GML, FLN, EMB, PCY
Oct. 4, 2013, 8:51 AM
- On or about December 10, the Market Vectors LatAm Aggregate Bond ETF (BONO) will be renamed the Emerging Markets Aggregate Bond ETF, with new symbol EMAG.
- As the name change suggests, the fund will have a new investment objective: Along with Latin American debt, the fund will hold Asian, Eastern European, and African paper as well.
- EMAG is expected to have a net expense ratio of 0.49%, the same as BONO.
Sep. 28, 2013, 1:30 PM
- "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
Feb. 27, 2013, 5:08 AMArgentina is due to appear in a New York Appeals Court today, when it will try to persuade the judge to reverse a ruling that it pay $1.3B to investors that refused to accept the country's debt restructuring after it defaulted 2001. The case could "create unrest in the credit markets and result in cascades of litigation," says Bank of New York Mellon (BK). | 3 Comments
EMAG vs. ETF Alternatives
Market Vectors Emerging Markets Aggregate Bond ETF (EMAG) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of Market Vectors EM Aggregate Bond Index (MVEMAG). The Index is comprised of sovereign bonds and corporate bonds denominated in U.S. dollars, Euros or local emerging markets currencies, and includes both investment grade and below investment grade rated securities.
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