Emerging-Markets Debt Is Still Cheap
On Wednesday morning, a lot of asset classes looked quite cheap after a prolonged slump sent major indices sharply lower. But one huge pop later, bargains are a bit harder to come by. With global stock markets rallying by close to 3% yesterday, it's suddenly much more difficult to identify opportunities with potential to post solid returns over the next few months.
There is, however, one asset class that still stands out as a bargain: emerging-markets debt. The shares prices of ETFs that hold bonds of issuers in developing markets have dropped quite a bit recently, pushing up yields in the process and creating an attractive entry point. The WisdomTree Emerging Markets Local Debt Fund (ELD), which has shed about 4% of its value over the past four weeks, now boasts a 30-day SEC yield of about 4.7%. That's quite appealing in any environment, and there exists the potential for that return to be enhanced dramatically by some additional factors....381 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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