This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video] Quick Take: Best Way to Play Emerging Markets May Be Bonds

NEW YORK (TheStreet) -- Despite growing concerns over emerging markets, David Robbins, portfolio manager responsible for emerging market strategies at TCW, told TheStreet's Gregg Greenberg there is a way to safely play the asset class. 

Robbins said the emerging markets asset class is very diversified, and its investment grade bonds are "very attractive" relative to U.S. investment grade fixed income. 

He added that TCW has introduced the first duration-defined fixed income emerging market ETFs. The three new ETFs include: The EGShares TCW EM Short Term Investment Grade Bond ETF  (SEMF), EGShares TCW EM Intermediate Term Investment Grade Bond ETF (IEMF), and EGShares TCW EM Long Term Investment Grade Bond ETF (LEMF).

The ETFs are based in U.S. dollars and are comprised of investment grade emerging market sovereign and corporate bonds, Robbins said. The biggest issuers in the ETFs by country are Brazil, Mexico and Russia -- which also happen to be the three largest investment-grade issuers in emerging markets. 

The SEMF yields are roughly 50 basis points higher than its U.S. equivalent, while the yields from the IEMF and LEMF are approximately 100 to 200 basis points higher than its U.S. equivalent. 

The ETFs have better yields than U.S. Treasury bonds, while emerging market investment grade assets have a 0% default rate over the past ten years, Robbins reminded investors.

He concluded that short-duration fixed income provides both a solid yield and duration-based safety against rising interest rates.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $129.66 3.60%
FB $79.58 1.00%
GOOG $537.90 0.00%
TSLA $226.03 0.00%
YHOO $42.51 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs