Emerging Markets Debt ETFs Come of Age

The video discusses the implications of a tepid GDP report on rate hikes in the U.S., leading to continued search for yield in emerging market (EM) debt and high yield bonds. It highlights the growth of EM debt ETFs, their impressive returns, and the associated risks, including political and credit risks. The impact of Federal Reserve policies on investment behaviors is also examined, with a focus on the potential dangers of investing in high-risk markets like Brazil and Turkey.

Discuss the potential consequences of a rush of cash into countries like Brazil with high budget deficits.

What factors should investors consider when evaluating the political risks in emerging markets?