The T. Rowe Price Emerging Markets Bond Fund (PREMX) is one of the few bond funds with a historical record of delivering returns that are competitive with equities while also giving its investors current income that you’d expect from investing in government debt.
One of the few markets that is not in a bubble territory right now is lower-tier government debt. Everything else looks severely overpriced. Governments like Germany, Switzerland, and the United States are currently paying their bondholders interest that will almost certainly trail inflation over the coming decades, and thus, will leave such investors poorer in 2026, 2036, and 2046 than they were in 2016 (the only reason to make such an investment right now is for liquidity purposes). Meanwhile, large corporations like Microsoft are issuing thirty-year bonds that barely pay 3%, which like large governments, has almost no chance of giving its debtholders a return that will … Read the rest of this article!