Traders Fear Emerging-Market Hard Landing As Bond ETF Swells

The rapid growth of a BlackRock Inc. exchange-traded fund that tracks emerging-market debt is causing jitters among investors.

The iShares JP Morgan EM Local Government Bond ETF, ticker IEML, has doubled in size this year, mopping up more than $3 billion of inflows as investors reach for average yields as high as 4.72 percent in developing economies. The risk is that if the carry trade unwinds, as tends to happen eventually, investors could race for the exit all at once and send the fund tumbling.

from FA News http://www.fa-mag.com/news/traders-fear-emerging-market-hard-landing-as-bond-etf-swells-33813.html

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