Emerging Markets Prove to Be One of the Year's Worst Performers in Credit

The video discusses the performance of emerging markets credit, which has seen a 4% loss year-to-date, compared to US investment grade credit's 3.75% loss. High yield has been the outperformer with minimal losses. Analysts predict high yield may suffer next year, while emerging markets credit could be a better option. Accessing less liquid markets poses challenges, with EMB ETF being a popular but underperforming choice. Liquidity concerns and risk compensation are key considerations for investors.

What has been the performance of emerging markets credit year-to-date?

• A 4% gain

• A 4% loss

• A 3.75% gain

• A 3.75% loss

Which type of bonds have been the outperformers with minimal losses?

• Energy junk bonds

• Investment-grade bonds

• High yield bonds

• Emerging markets bonds

What is the prediction for high yield bonds next year?

• They will suffer

• They will gain 4%

• They will outperform

• They will remain stable

What is a major concern for investors in emerging markets?

• Stable prices

• High returns

• Liquidity

• Low risk

How has the EMB ETF performed compared to its benchmark index?

• It has matched the benchmark

• It has outperformed by 4%

• It has outperformed by 1%

• It has trailed by nearly 1%