Emerging markets hold promise, pitfalls
The search for yield in an era of record low interest rates is leading many bond investors overseas to the world’s fastest-growing economies. Mutual funds that invest in emerging-markets bonds are growing rapidly in number and attracting new cash. Despite slower economic growth in China and India, these funds have returned nearly 7 percent on average through the first half of this year, best among all bond fund categories. Top fund managers give their takes on the chief risks and rewards of investing in emerging markets bonds.