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Author: theHedgehog Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: EM Sovereign Bonds Date: 11/1/2007 6:09 PM
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There haven't been any failures of Emerging Market Sovereign Bonds, so I was wondering if any of the bond crowd has been looking overseas for bonds? Rising trade surplus and banking reserves should make them a good deal and safer than in the past.

Hedge
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Author: stjoe56 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21956 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/1/2007 9:48 PM
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I am not smart enough to follow foreign bonds. I would recommend you look at a mutual fund or EFT following that market. I know Pimco has one and I think EDD is an ETF.

SJ

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Author: theHedgehog Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21957 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/1/2007 10:04 PM
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I am not smart enough to follow foreign bonds. I would recommend you look at a mutual fund or EFT following that market. I know Pimco has one and I think EDD is an ETF.

I was just trying to get an idea as to whether anyone in this forum had looked beyond the US. Apparently not.

Hedge

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Author: LotAhype Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21985 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/6/2007 9:03 AM
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Are Sovereign Bonds like the fabled 20% Norwegian bonds I have heard about? Is there any such thing as a Norwegian or Euro based bond paying 15% or over?

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21986 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/6/2007 9:25 AM
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Are Sovereign Bonds like the fabled 20% Norwegian bonds I have heard about? Is there any such thing as a Norwegian or Euro based bond paying 15% or over?

Here is a list of CD rates for various countries.

http://www.everbank.com/001WorldCurrencyCDSingle.aspx?LinkID=Body1

Norway (up to 12 months) is listed at under 4%. Cds aren't the same as Sovereign bonds, but should give you a ballpark of what going yields are in those countries.

Of course, these are yields. If the US dollar drops against a currency, as it has been against the Euro, etc., your return could be much higher than the yield. On the other hand, if the US dollar appreciates, you could lose money. So, the issue isn't really that there are nice, low risk, high yielding government bonds from other stable countries. But investing in bonds/CDs in foreign currencies can provide a much higher return than just the yield, if the US dollar depreciates.

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Author: stratton2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21987 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/6/2007 11:26 AM
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Of course, these are yields. If the US dollar drops against a currency, as it has been against the Euro, etc., your return could be much higher than the yield. On the other hand, if the US dollar appreciates, you could lose money. So, the issue isn't really that there are nice, low risk, high yielding government bonds from other stable countries. But investing in bonds/CDs in foreign currencies can provide a much higher return than just the yield, if the US dollar depreciates.

A recent data point (Sept 2007) is I have a friend in the US from NZ. Her brother was going to send her money, but the USD was kind of "high" at the moment so he waited another week and got 15% more US $.

Paul

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21989 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/6/2007 11:48 AM
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http://www.nytimes.com/aponline/business/AP-Dollar.html

And, as we speak, dollar hits new low against Euro.

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Author: PolymerMom Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21993 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/6/2007 8:02 PM
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I'm a firm believer in putting some portion of my savings in foreign currency, however I hesitate when I have to pick the actual currency. At the moment, I am invested in LSGLX, which is a global bond fund, to spread the risk. Some currencies will go up, others will go down, as we all know. Too bad there's not a MM fund that invests in international CDs!

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Author: brucedoe Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21997 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/7/2007 9:02 AM
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Polymer

There are ETFs that invest in a foreign security. I know there is one for the Swiss franc and another for the Swedish Kronen(?) plus several other countries.

Though Sweden is a Socialized country, everyone has medical care and their GDP is greater than ours. Their currency is strong too and we have a trade deficit with them (as we do with every industrialized nation). They have a high suicide rate, though, for some reason.

brucedoe

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Author: brucedoe Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21998 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/7/2007 9:11 AM
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Here is a Motley fool article on foreign currency ETFs:

http://www.fool.com/investing/etf/2006/08/15/the-abcs-of-currency-etfs.aspx

brucedoe (who is sorry he is answering your post like creeping inflation)

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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21999 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/7/2007 9:34 AM
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Though Sweden is a Socialized country, everyone has medical care and their GDP is greater than ours. Their currency is strong too and we have a trade deficit with them (as we do with every industrialized nation). They have a high suicide rate, though, for some reason.

brucedoe

______________________________________________
I have two theories on the suicide rate, which makes me think they have a national epidemic of depression brought on by either:

1. Watching Ingmar Bergman movies, or
2. The low amount of sunlight they have most of the year.

Bill <--(1/2 Irish, 1/4 Swedish, 1/4 Smorgasbord)

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22000 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/7/2007 9:49 AM
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I have two theories on the suicide rate, which makes me think they have a national epidemic of depression brought on by either:

1. Watching Ingmar Bergman movies, or
2. The low amount of sunlight they have most of the year.


There's actually a lot of evidence of a link between lack of sunlight and depression and alcoholism, from whence suidice derives.

Ingrid Bergman, on the other hand, at least in Casablanca, is a reason to keep living.

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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22001 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/7/2007 10:57 AM
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There's actually a lot of evidence of a link between lack of sunlight and depression and alcoholism, from whence suidice derives.


I know, I wasn't kidding about that part.
On the other hand, I don't think the same is quite true in Norway, so I'm not entirely convinced about that.

Ingrid Bergman, on the other hand, at least in Casablanca, is a reason to keep living.

I meant Ingmar, the director. His work is really dreary.
And I'd take Ann-Margret over Ingrid Bergman any day.

Bill

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22002 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/7/2007 12:45 PM
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Ingrid Bergman, on the other hand, at least in Casablanca, is a reason to keep living.

I meant Ingmar, the director. His work is really dreary.
And I'd take Ann-Margret over Ingrid Bergman any day.


Believe me, I do know the difference. (I actually do like some of Ingmar's work, but definitely not when I need a pick-me-up.)

Ann-Margaret has aged well, and the Grumpy Old Men movies may be her best vehicle. She mostly made bad movies when she was in her sex-kitten prime (other than Cincinnati Kid), but her sweater and "Got a lot of Livin' to Do" scenes in Bye-Bye-Birdie are way up on my hot list. (She had few good moments in the inferior remake of State Fair.) Still, there's only one Casablanca.

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Author: PolymerMom Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22003 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/7/2007 6:46 PM
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Bruce,

What I really want is a mix of currencies in one place, something like LSGLX provides. Making a bet on a single currency is playing Russian Roulette in my mind. Yes, I could try to put one together, but that requires me to track and adjust the mix periodically - besides adding in my biases. (See Wendy's posting on METAR about how once people make a choice, revisiting it reinforces the first choice.)

Thanks,
Mom

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Author: PolymerMom Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22004 of 35400
Subject: Re: EM Sovereign Bonds Date: 11/7/2007 6:49 PM
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who is sorry he is answering your post like creeping inflation

LOL! I've done this myself at times<sigh>.

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