Western Asset Emerging Markets Debt Fund Inc EMD

Western Asset Emerging Markets Debt Fund Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund's primary investment objective is to seek high current income and its secondary objective is to seek capital appreciation. It invests primarily in United States (U.S.) dollar and non-U.S. dollar denominated debt securities of issuers in emerging market countries. Under normal market conditions, the Fund invests at least 80% of its managed assets in debt securities of issuers in emerging market countries. The Fund may invest up to 20% of its managed assets in non-debt securities and non-emerging market issuers, including equity securities. It may invest in securities denominated in currencies of emerging market countries. The Fund seeks to maintain an average portfolio duration between 20% above and 20% below the average duration of the JPMorgan Emerging Markets Bond Index Global Diversified. Its investment manager is Legg Mason Partners Fund Advisor, LLC.

NYSE:EMD - Post by User

Western Asset Emerging Markets Debt Fund Inc

Bullboard Posts

Post by sherlockdavidon Apr 22, 2009 3:15pm

319 Views

Post# 15937035

How to get EM MKT upside w/out all the risk!

Margin of Safety.
This portfolio trades at a huge dicount to NAV, which gives you 2 benefits: 1.) as credit normalizes spreads should come in and the portfolio should get interested buyers pushing the fund to NAV...can you say capital gains. 2.) the yield is being earn on a full dollars worth of investment which you can buy for 0.81 cents. The high yield is sustainable due to the discount.
For the really bullish on the EM MKTs you have kept upside potential with less risk because you have moved up the capital structure. I have a 1 yr price target of $16.20.

Bullboard Posts

New Canadian drone made exclusively for military operations