We saw some substantial outflows last week in the largest Emerging Markets Bond focused ETF, EMB (iShares JPMorgan USD Emerging Markets Bond, Expense Ratio 0.40%, $11.9 billion in AUM).
From BlackRock: Fundamental misconceptions about bond investing are common, according to new BlackRock research. Jeff Rosenberg shares three.
From BlackRock: Fixed income investing today is very different from several years ago, but this doesn’t mean there aren’t opportunities for generating returns. Rick Rieder explains.
From BlackRock: Emerging market bonds have gotten a lot of attention this year. When choosing a fund, consider sustained performance rather than short bursts.
From BlackRock: The latest quarterly update of the BlackRock Sovereign Risk Index (BSRI) makes it easier for investors to determine how emerging market bonds stack up. Richard Turnill explains.
From Zacks: Gone are the days when emerging bond ETFs required the fund manager’s active technique. These markets were believed to highly volatile and crammed with political upheavals. But the latest trading pattern and investors’ outlook say a different story.
From Zacks: U.S. consumer price inflation hit the brake suddenly after improving for quite some time. Consumer prices in the U.S. rose 2.4% year over year in March 2017, below last month’s reading of a 2.7% rise as well as market expectations of a 2.6% increase.
From BlackRock: Jeff Rosenberg takes down his recommendation on emerging market (EM) debt to “neutral” after this year’s big rally. He also explains why he thinks underperforming agency mortgage-backed securities (MBS) deserve a fresh look.
Emerging markets bonds were in focus late last week on considerable inflows in the largest ETF in the segment, EMB (iShares JPMorgan USD Emerging Markets Bond, Expense Ratio 0.60%, $7.9 billion in AUM).
From David Fabian: Emerging market bonds were one of the few bright spots across the fixed-income landscape in 2016. This category trailed only U.S. high yield debt by total return metrics despite some meaningful volatility in the aftermath of the U.S. election. Investors also took notice of this outperformance and the favorable yields to boot.
From Tyler Durden: The Emerging Market Bond Bloodbath has left a painful trail as investors pulled a record $546 million from the largest EM Bond ETF last week.
From Larry Edelson: According to a recent report from the ratings agency Moody’s, some 26 percent of countries rated now have a “negative” sovereign debt outlook, up from 17 percent at the end of last year.
From Todd Rosenbluth: While the active mutual fund versus passive ETF debate continues to play out, it is easy to miss that not only are investors combining the products in their portfolios, but some mutual fund managers are also owners of ETFs.
From David Fabian: There is no doubt that 2016 has been a good year for ETF investors directing their capital towards income-generating asset classes. The combination of a rising stock market and falling interest rates have helped push prices higher across virtually every segment of the economy.
As investors desperately seek out yield anywhere they can find it, the iShares JPMorgan USD Emerging Market Bond Fund ETF (NYSE:EMB) has become one of 2016’s biggest winners.