This data point accurately summarizes the vulnerability of emerging markets debt and equities to anticipated changes in Federal Reserve Policy: To this point in Friday's session, 43 exchange traded funds have hit 52-week lows, 14 of which are emerging markets bond or stock funds.
For those that prefer fractions, about a third of today's 52-week low club is comprised of emerging markets ETFs. Some emerging markets bond funds are particularly vulnerable to higher U.S. interest rates and with the odds dramatically rising this week that the Fed boosts rates at its September meeting, that vulnerability needs to be immediately examined.
Issuers of emerging markets sovereign debt lived off the fat of the land for years. Global investors gobbled up the debt on the basis that many developing countries had lower debt-to-GDP ratios than major developed markets, such as the US. Plus, ...
/www.benzinga.com/trading-ideas/long-ideas/15/08/5748142/the-fed-dictates-whats-next-for-these-emerging-market-bond-et alt=The Fed Dictates What's Next For These Emerging Market Bond ETFs>Full story available on Benzinga.com
More...