Supporting yields on sovereign and corporate debt, Brazil, China and India benchmark rates are above 5%, whereas the Fed is committed to keeping short-term interest rates near zero until 2015. Corporate bonds typically come with a risk premium over sovereign debt to compensate investors for the added default risk.
Market Vectors Emerging High Yield Bond ETF
For more information on high-yield speculative debt, visit our junk bonds category.
Max Chen contributed to this article.