“Emerging markets have an average debt-to-GDP ratio of 35% versus 100% for developed nations in Europe, Japan and the U.S. On top of that, they hold roughly 66% of all foreign currency reserves,” says Josh Brown at The Reformed Broker blog.
“EM nations have triple the fundamentals of the developed world, burgeoning ranks of middle class consumers … and yet they offer much better return potential, with higher yields and a less crowded playing field,” he added.
iShares JPMorgan USD Emerging Markets Bond
Full disclosure: Tom Lydon’s clients own EMB.