Additionally, if oil prices remain around current levels, Venezuela could face $25 billion in external financing demands, Zero Hedge reports, citing Bank of America Merrill Lynch.
EMHY, with an effective duration of 5.78 years, is not the only ETF affected by exposure to Venezuelan debt. The Vanguard Emerging Markets Government Bond ETF (NasdaqGM: VWOB) has a 4.1% weight to Venezuelan bonds.
To its credit, VWOB is down just 3.3% over the past 90 days, which is no small feat considering the ETF’s combined allocation to Mexico, Russia, the United Arab Emirates, Venezuela and Qatar is nearly 30%. For those keeping score at home, that is three OPEC members and two of the world’s largest non-OPEC producers.
The UAE depends on oil for nearly two-thirds of government revenue and that number is over 50% for Qatar. Russia’s dependence on oil as a percentage of government revenue is barely below that of Venezuela oil accounts for a greater percentage of Mexico’s government revenue than it does in OPEC member Ecuador.
iShares Emerging Markets High Yield Bond ETF
