What's Ailing Emerging Market Bond ETFs

Related: Treasury Bond ETFs Are Losing Support from Asian Buyers

As investors look for opportunities after the pullback, with some turning the emerging market countries like China, some may consider Chinese financial companies and related country-specific exchange traded funds for a more stable approach to the developing economy.

According to State Street Global Advisors, cheap valuations and a government that can easily bail out pockets of China’s financial sector from instability makes the country’s bank stocks a buy, Bloomberg reports.

“Over indebted Emerging Market governments and corporations will have to get their hands on huge amounts of dollars over the next few years,” according to Palisade. “But with interest rates rising. And the dollar getting stronger – the expensive cost to roll over all this debt poses a new risk for Emerging Markets. Especially the countries and firms with poor credit ratings.”

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