Pimco Sees Value in Brazilian Bonds

With an effective duration of 4.47 years, ELD has a 30-day SEC yield of 5.5% and an average yield to maturity of 5.88%. Brazil is the ETF’s third-largest country weight. EMLC has an effective duration of 4.48 years, a yield to worst of 6.15% and a 30-day SEC yield of 5.6%. Brazil is that ETF’s second-largest country weight behind Poland.

Pimco could also boost purchases of Brazilian corporates following a yield spike in that asset class, Reuters reported. Investors can follow along with the actively managed WisdomTree Emerging Markets Corporate Bond Fund (NasdaqGM: EMCB). The $103.6 million ETF has a 30-day SEC yield of 5.1% and an effective duration of almost five years.  EMCB devotes nearly 17% of its weight to Brazilian corporates.

The SPDR Merrill Lynch Emerging Markets Corporate Bond ETF (NYSEArca: EMCD) has an almost 21% weight to Brazil. More than 80% of EMCD’s holdings are rated Baa or A.

WisdomTree Emerging Markets Local Debt Fund