Investors are so convinced that 2014 will continue to be theopposite of 2013 that they're piling back into emerging-marketswagers that were among last year's biggest losers.

Buyers plowed $273.8 million two days ago into the biggestexchange-traded fund (ETF) focused on emerging-market debt, itslargest one-day inflow ever, according to data compiled byBloomberg. They're also demanding about the least extra yield in ayear to own the debt of developing nations instead of benchmarksecurities.

So far, it's paying off. Bonds of countries from Turkey to Argentina are beating U.S. corporate notes and stocks withabout 8 percent returns this year, according to JPMorgan Chase& Co. emerging-market bond index data.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.