Emerging Bond Markets
Of course in the emerging markets there are considered to be more risk than in those that are mature, and these include the following:
The exchange risk that there are more extreme ranges in currency fluctuations that may be experienced
Political risk, with regard to there being governments that could be less stable and therefore lead to risk for investors.
Corporate risk - it is harder to work out with some emerging companies due to history and the same sort of records as to how stable a company is
Inefficient market systems - it could be that the market does not operate as efficiently in that country leading to more complications here
So there is a lot to be considered when it comes to the emerging bond markets and working out just what to do!
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