Emerging market investors shun riskiest bonds as US yields soar
· economictimes.indiatimes.com
Emerging-market investors are pulling back from riskier bond investments amid a significant selloff in global credit markets. The recent turmoil has resulted in high yields for US Treasuries, raising concerns among money managers. With credit spreads at tight levels not seen since 2007, investors are worried about potential bond selloffs. Some analysts are trimming exposure to certain countries while favoring higher-rated credits like Indonesia and the Philippines.
Dollar debt from countries in the emerging world returned 1.4% over the past year despite the recent turmoil that has sent yields on US Treasuries to the highes...