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Record rise in government debt will hit emerging markets harder, Fitch says


By Reuters Staff
3 Min Read
LONDON, Jan 6 (Reuters) - A record increase in government debt globally will hit emerging markets disproportionately, with developing nations not benefiting from lower interest rates and debt service burdens providing a cause for concern, Fitch Ratings said on Wednesday.
Global sovereign debt soared by $10 trillion to $77.8 trillion, or 94% of world gross domestic product, as governments boosted spending on health and shored up their economies roiled by the fallout from the coronavirus pandemic, Fitch calculated.
Both the increase and debt levels are at a record high, Fitch’s head of sovereign ratings, James McCormack, wrote in a report, adding that the last $10 trillion tranche took seven years to build. ....

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4 Invesco ETFs to Get Short-Term Emerging Markets Debt Exposure


4 Invesco ETFs to Get Short-Term Emerging Markets Debt Exposure
December 21, 2020
With the low rates in U.S. Treasury bonds these days, investors are looking to emerging markets (EM) for that hard-to-find yield. Invesco offers four EM debt ETFs that give investors exposure to EM debt while limiting duration risk.
These Invesco BulletShares
® ETFs are based on the Nasdaq Bulletshares
® USD Emerging Markets Debt Index (Index). All funds invest at least 80% of its total assets in corporate bonds that comprise the Index.
The Index is designed to represent the performance of a held-to-maturity portfolio of US dollar-denominated, emerging markets bonds with effective maturities in 2021, 2022, 2023, and 2024. The funds do not purchase all of the securities in the index; instead, utilize a “sampling” methodology to seek to achieve investment objectives. ....

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