“After seven years of a credit binge fueled by easy money from the Fed the tide is going out and what’s going to be left to see is the quality of assets that have been bought over this period,” Lupton added. “There are going to be plenty of assets that are not going to be able to weather the Fed rate-hiking process.”

Moreover, JPMorgan warned of countries where ratios of private non-financial credit to GDP have jumped in recent years. For instance, Hong Kong shows 293.2% and Singapore has 178.9%. Other Asian countries also show high ratios, including Malaysia, South Korea, mainland China, Thailand and South Korea. Brazil and India also had large increase in their debt ration since the financial crisis.

The emerging market corporate bond ETFs include USD-denominated debt from many of these indebted countries. For instance, CEMB includes 15.7% Brazil, 10.7% China, 7.6% korea, 5.6% India, 4.1% Hong Kong and 2.1% Singapore. EMCB holds Brazil 14.4%, China 10.7%, Hong Kong 5.6%, India 5.6% and Singapore 2.4%. EMCD tracks Brazil 15.1%, China 13.1%, South Korea 5.4%, India 4.6% and Hong Kong 2.1%.

For more information on the fixed-income market, visit our bond ETFs category.

Max Chen contributed to this article.