I’m trying to remember what the material says about Foreign Bonds and their impact on a portfolio as far as diversification, returns, currency etc… anyone remember?
foreign bonds diversifies the portfolio and increases return. probably SS17.
all i remember that emerging country bounds recover faster from crashes…
compscikid… Yeah I remember the emerging market bonds… was referring more to developed foreign market bonds. Billwest nailed it… as for the Emerging Market Bonds, what I remember is as follows: Advantages: - Resilliency - recovers from negative events quickly - Undiversified - great return enhancing potential Disadvantages: - Political Risk - Weak Covenant Agreements - Lack of transparency - Not much in the way of legal recourse What have I missed?
good: diversification bad: negative skew