We recommend keeping an eye on this ETF, since the July 25 straddle confirms the range bounds. The straddle was developed with significant financial involvement.
iShares $JPM $USD Emerging Markets #Bond ETF. The fund tracks an index of US-dollar-denominated sovereign debt issued by emerging-market countries with more than $1B outstanding and at least two years remaining in maturity.
Today the EMB 3/17 86P in large size were opened today...
Currency risk: Betting against the debt of a country with a currency that is...
NASDAQ:EMB
As a way to get exposure to the China housing debacle.... I go over my chart on a new position I opened that has relatively low volatility considering the weight of exposure it may have to the chinese housing collapse.
.. for a .95/contract credit.
Notes: With a current yield of 4.032% (4.381/share annualized) versus a TLT (20 Year + Maturity Treasuries) yield of 1.607%, a play to acquire this emerging market bond fund at a 102.05 break even or below. On a one-lot basis, a bit buying power heavy, so consider acquiring a smaller amount of shares if it ever gets to around this...
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...
