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Emerging market bonds offer high yields

Aspiring economies afford you entry opportunities, byfloating bonds that promise high possible yields.

Three reasons for choosing emerging market bonds

  1. You can benefit from the high interest rates in emerging markets.

  2. You can invest in different currencies.

  3. All the bonds can be bought and sold easily and flexibly from 8 a.m. to 6 p.m. at Börse Stuttgart.

Tops & Flops

Markets with potential upsides

It is the future that gets traded on the exchanges. Precisely for that reason, many investors are interested in bonds issued by countries where the economy is growing dynamically and that are on the threshold of becoming industrialized nations. Such countries tend to be referred to as emerging markets. They include countries such as Brazil, Russia, China or Argentina, not to mention some East European nations and Turkey. The driving force in such economies is advances in industrialization, strong population growth and a rising thirst for consumer goods. The social and economic restructuring involved entails a vast requirement for capital. It is therefore no surprise that companies and governments in the emerging markets woo investors – by offering high yields – and the bonds are thus furnished with comparatively high interest coupons.

That said, these fixed-income securities entail appreciably higher risk, as emerging markets as a rule exhibit far greater economic volatility than the industrialized nations. Here, too, the iron law of investing applies: The higher the possible yield, the greater the risk. Nevertheless, no one who finds attractive interest rates exciting is likely to want to miss out on emerging market bonds. This is also one reason why such securities are now included in the portfolios of many investment funds.

Most of these bonds are denominated in US Dollars. You can trade them flexibly through Börse Stuttgart – not just in minimum lots or multiples thereof. You also have the opportunity to adjust your order volume in small steps. At the same time, our trading experts ensure there is ample liquidity in the market.

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