Emerging Market Sovereign Debt

Discussion in 'Trading' started by ZEAK, Jan 2, 2009.

  1. ZEAK


    How would one go about buying emerging market sovereign debt? I know nothing of this except that there is an EFT called PCY, but want to know if one can hold the countries bonds outright.

  2. Emerging market sovereign debt always turns into submerging market sovereign debt. Leave it alone, unless you have a "substantial size" account at a bulge-bracket firm. :cool:
  3. ZEAK


    So, I take it you are against buying PCY in small lots on a regular basis??
  4. 1) Yes. There are "better" ways of making an ~8% annual return.
    2) The fund appears to be running out of upside potential on the chart.
    3) I am also slightly "concerned" that the fund appears to be operated from what may be a teeny-tiny, suburban-Chicago office.
  5. There are some Emerging Markets Debt mutual funds.

    They do really well in bull markets, but get crushed in bear markets.
  6. There are some emerging market closed end debt funds. These were trading at outrageous discounts but have closed somewhat. I'm long EMD small. Purchased more as a discount play, but I'll probably hold it as a deflation hedge until defaults occur. Yielding about 13% currently with the discount to NAV.

    Full disclosure: Long EMD