EMG’s credit quality includes AA 4.5%, A 15.9%, BBB 46.8%, BB 8.1%, B 5.2%, below B 8.6% and not-rated 10.9%. PCY’s credit quality includes AAA 0.8%, AA 4.5%, A 16.9%, BBB 48.1%, BB 17.6%, B 4.3% and below B 7.9%.
Looking ahead, emerging market bond investors should watch out for global volatility or deteriorating fundamentals in the developing economies, which can trigger sudden outflows from the market. Oey points out that capital flight will negatively affect the short-term performance of these funds.
iShares J.P. Morgan USD Emerging Markets Bond ETF
For more information on the fixed-income market, visit our bond ETFs category.
Max Chen contributed to this article.