About 3 weeks ago, I did some number crunching on
the longer term, historical returns of a diversified portfolio of high yield bonds.
This week, I decide to look at the emerging market bonds.
After looking at the data, I realize that the emerging market bonds are not too different from the high yield bonds.
They are more volatile but the difference is that… for some reason, as a basket, their lowest intermediate term returns tend to be positive, whearas on a 5-year basis, you have some 5-year period where high yield bonds will still be negative.
So let us get down to it.
Index to Look Into – JP Morgan EMBI Global Total Return Index
I was wondering which emerging market bond index to use so I thought what the heck, let me see what do some of the popular emerging market bond funds use:
- JP Morgan EMBI Global Diversified Index
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