Mobius: EMBI is well-defined benchmark for risk analysis

This week's graph analysis provides an insight into emerging markets yield spreads

The graph sketches out the changes occurring in emerging markets yield spreads over the past 10 years in comparison to the major stock markets in the sector. The blue line represents the JPMorgan Emerging Markets Bond index (EMBI), which is a total-return index tracking the traded market for US dollar-denominated sovereign restructured bonds. It includes issues such as Brady bonds, which were developed in the late 1980s as a way to finance Latin American sovereign debt and which expanded to include other emerging markets later on. The EMBI currently includes 25 issues from eight co...