VWOB / Investors Are Soaking Up Emerging Markets Bonds in Early 2023

Investment grade emerging markets debt could be good “rainy day exposure” if the U.S. falls into a recession. At least, that's what Vanguard's co- more_horizontal

VWOB is an emerging market government bond index ETF. It offers a growing 5.5% dividend yield, but very few advantages relative to peers. An overview more_horizontal

Moving forward, the capital markets are expecting central banks to ease rate hikes, which can turn the credit risk dial higher. That could open up opp more_horizontal

The anticipation of more rate hikes by central banks amid stubborn inflation could be fueling an amplified shift to emerging markets (EM) debt. Latin more_horizontal

Macroeconomic headwinds like rising interest rates and inflation have stifled a comeback for emerging markets (EM). However, more firms are becoming b more_horizontal

VWOB owns a portfolio of government bonds in the emerging markets. Emerging markets may become more stabilized as the Federal Reserve's rate hike cycl more_horizontal

When it comes to emerging markets bonds, many fixed income investors face a conundrum. They're attracted to the asset class by yields that are well ab more_horizontal

Declining inflation and China reopening its economy has led overseas debt issuance to soar. In turn, improving economic conditions are spurring invest more_horizontal