Emerging market bonds denominated in USD look to be taking a leg to the downside.
Could this be an early signal of global liquidity drying up again? 👀
The monetary policy suggests stimulus but fiscal policy is at a stand still. Without more cooperation between politicians and parties this could become an issue sooner than later.
Although IV is not ideal here (20.1%), this is another one I've had on my IRA shopping list with its current yield of 4.98% and divvies paid monthly.
I would go only two rungs at the moment, since there are only June and July expiries currently available, with the next available in September, with liquidity progressively waning as you go out in time. The...