Investors that were early to identify the attractive valuations following the volatility in emerging market bonds in early 2014 are still sitting atop a pile of gains, yet in recent months new investors haven’t experienced the same steady uptrend.
Partly due to the slack in the credit markets domestically, bonds in emerging markets have largely moved sideways in a 2% range over the past few months. The seemingly endless uptrend in the U.S. dollar has been weighing heavily on retail interest for foreign assets, even those that are in fact already denominated in U.S. Dollars.