Don't Fight the Money Train

Despite last year's poor returns, buyers are pouring into emerging-market debt this spring.

Investors are so convinced that 2014 will continue to be the opposite of 2013 that they’re piling back into emerging-markets wagers that were among last year’s biggest losers.

Buyers plowed $273.8 million two days ago into the biggest exchange-traded fund (ETF) focused on emerging-market debt, its largest one-day inflow ever, according to data compiled by Bloomberg. They’re also demanding about the least extra yield in a year to own the debt of developing nations instead of benchmark securities.

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