By Dr. Carla Pasternak
Now is the time to buy dollar-denominated emerging market government debt. The asset class vaulted nearly 4% in the last two months, way ahead of U.S. Treasuries and yes, even ahead of gold.
Investors are flocking to emerging market debt for their robust yields. The Bank of America Merrill Lynch USD Emerging Market Sovereign Plus Index (IGOV) now yields 5.3%. That's well above the equivalent 10-year Treasury's 1.8%.