Rodilosso also noted that the yield spread on emerging markets junk bonds relative to equivalent U.S. issues surged to 200 basis points by the end of last year after starting the year at a spread of just 25 basis points.
Investors can grab the Market Vectors Emerging Markets High Yield Bond ETF (NYSEArca: HYEM), which has a comparable duration and 2014 performance to the largest U.S. junk bond ETF, with a 30-day SEC yield north of 7%. China, Russia and Mexico combine for 37% of HYEM’s weight.
Market Vectors Emerging Markets High Yield Bond ETF
Tom Lydon’s clients own shares of EMB.